Decided 23 May 1979 End date May 23, 1979 | Citation(s) [1979] 2 NZLR 744 | |
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Full case name Starlight Enterprises Ltd v Lapco Enterprises Ltd Judge(s) sitting Woodhouse, Richardson, McMullin Ruling court Similar Knyvett v Christchurch Casinos Ltd, SGS (New Zealand) Ltd v Quirke Export Ltd, Rayneon (New Zealand) Ltd v Fraser | ||
Starlight Enterprises Ltd v Lapco Enterprises Ltd [1979] 2 NZLR 744 is a cited case regarding repudiation.
Contents
Background
Lapco manufacture 4,000 bags for Starlight. 571 bags into the contract, they sent Starlight a letter saying "we wish to advise you that our new price will have to be $4.10 per bag from now on. Furthermore, we wish to point out that we are going to step up the rate of production of your bags in order to avoid any further increase".
Starlioght treated this letter as repudiation, and sent them a letter saying "we have decided to cancel the contract with your company forwith".
Held
The court ruled that the contract was not repudiation.
References
Starlight Enterprises Ltd v Lapco Enterprises Ltd Wikipedia(Text) CC BY-SA