Cross v Aurora Group Ltd | |
Court: | High Court of New Zealand |
Date Decided: | 15 December 1988 |
Full Name: | Peter Glen Cross (First Plaintiff) and Cross Property Management Limited v Aurora Group Ltd |
Citations: | (1989) 4 NZCLC 64,909 |
Judges: | Wylie J |
Transcripts: | High Court judgment |
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]
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.
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".