| Cross v Aurora Group Ltd | |
|---|---|
 | |
| Court | High Court of New Zealand |
| Full case name | Peter Glen Cross (First Plaintiff) and Cross Property Management Limited v Aurora Group Ltd |
| Decided | 15 December 1988 |
| Citation | (1989) 4 NZCLC 64,909 |
| Transcript | High Court judgment |
| Court membership | |
| Judge sitting | Wylie J |
Cross v Aurora Group Ltd (1989) 4 NZCLC 64,909 is a cited case in New Zealand regarding the Contracts (Privity) Act 1982 and pre-incorporation contracts. [1]
Background
In 1987, Peter Cross negotiated a contract for property management services to Aurora Group, and planned to use a company structure for the contract.
The contract stated that it was "Cross Property Management Limited a company currently being formed", and soon after. Cross's lawyers changed a name of a holding company named Felstead limited, to Cross Property Management Limited.
Later, when the new company tried to ratify the contract, Aurora refused to accept it, and as a result CPM sued to enforce the contract.
Held
CPM's claim failed. Wylie J stated "Designation is a strong word, a positive word and means something more than a mere contemplation or possibility".
References
- ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. [ page needed]. ISBN 0-86472-555-8.
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