Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Formation of contract - Subject matter of contract

127: Contract void if goods have perished at time when contract is made

You could also call this:

“The deal is off if the stuff you're buying is already gone when you agree to buy it”

When you agree to buy specific items from someone, but those items no longer exist when you make the agreement, the deal is not valid. This happens without the seller knowing about it.

Here’s an example to help you understand: Imagine you want to buy 100 tonnes of potatoes from a farmer. You both agree on the sale. However, the farmer doesn’t know that all the potatoes have gone bad and can’t be eaten anymore. In this case, your agreement with the farmer doesn’t count because the potatoes you wanted to buy don’t exist as edible food anymore.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844315.

Topics:
Money and consumer rights > Consumer protection Business > Fair trading
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126: Existing or future goods, or

"Buying things that exist now or will exist later"

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128: Contract void if goods perish before sale but after agreement to sell, or

"Agreement cancelled if item is destroyed before you receive it"

Part 3 Sale of goods
Formation of contract: Subject matter of contract

127Contract void if goods have perished at time when contract is made

  1. A contract of sale for specific goods is void if the goods, without the seller’s knowledge, have perished at the time when the contract is made.

    Example

    A person (A) sells 100 tonnes of table potatoes to another person (B).

    Without A’s knowledge, the potatoes, at the date of the contract, had become unfit for human consumption because of second growth.

    The contract between A and B is void.

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