Bird v Bicknell explained

Bird v Bicknell
Court:High Court of New Zealand
Date Decided:23 September 1987
Full Name:David Bird and Denise Beatrix Bird v Janice Bicknell, Dominic Faanoi, Dennise Faanoi, Ceedric Rodrigues and Robert Martin
Citations:[1987] 2 NZLR 542
Judges:Hillyer J
Transcripts:http://www.nzlii.org/nz/cases/NZHC/1987/277.pdf

Bird v Bicknell [1987] 2 NZLR 542 is a cited case in New Zealand regarding fraud merely being a factor (albeit an important factor) in determining whether an exclusion clause is valid or not.[1] It is contrasted with M E Torbett Ltd v Keirlor Motels Ltd where is held that an exclusion clause is simply not valid where a party has committed fraud.

Background

Bird was in the business of selling franchises regarding a chemical process, which they told Bicknell was secret only to them, and that a patent application was pending. These claims were later discovered to be fraudulent, and Bicknell refused to make the final payment on his franchise. Bird pointed out the contract had a clause agreeing to no warranties were given about the patent.

Bird sued Bicknell.

Held

The court found that the exclusion clause was not "fair and reasonable".

Notes and References

  1. Book: An introduction to the Law of Contract in New Zealand . 4th . Chetwin . Maree . Graw . Stephen . Tiong . Raymond . Thomson Brookers . 0-86472-555-8 . 243. January 2006.