Articles

Contract Law

Implications for Incentive Payments/Bonuses

Employment Court decision has significant implications for employers in respect of target-based incentive payments, and holiday pay entitlements over annual closedown periods. The Labour Inspectorate and Metropolitan Glass jointly filed proceedings in the Employment Court as they were unable to agree on holiday pay calculations (Metropolitan Glass and Glazing Limited v Labour Inspector, Ministry of Business, Innovation and Employment [2020] NZEmpC 39).
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Medicinal Cannabis - Sponsorship and Advertising

Individuals or entities who are involved or are interested in getting involved in the medicinal cannabis industry may wish to use advertising or sponsorship to increase brand recognition. An entity may also wish to advertise its products. There are currently no specific guidelines on advertising and sponsorship of medicinal cannabis. Sponsorship and advertising may, therefore, depend on compliance with the Medicines Act 1981 and whether the company supplies products which have been approved under that regime.
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What is the Difference Between Assignment and Novation?

Assignment of contracts is a fairly common practice in the business world. In an assignment, the person assigning the contract - the "Assignor" - assigns the benefits of the contract the Assignor holds to a new person (the "Assignee") who takes the benefit of that contract "the Assignee". Some contracts may expressly prohibit assignment and some contracts provide that a contract may not be assigned without the consent of the other party. If a contract has no provision relating to assignment, then the general rule is that it may be assigned, with a few exceptions.
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Medicinal Cannabis in New Zealand – An Overview for Getting Started

Medicinal cannabis is a relatively new market and there are ways for you to get involved in the different elements of manufacturing medicinal cannabis products. The first thing that needs to be done is to apply for a Medicinal Cannabis Licence which is issued by the Medicinal Cannabis Agency. This is a lengthy process and requires the applicant to have given their project consideration in certain areas.
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Obtaining an Enforceable Guarantee

There are many circumstances where businesses might give credit – even without formally doing so. Providing goods or performing services in advance of full payment is extremely common, but if a company or sole trader you are dealing with has financial problems or a poor credit history, then you may not get paid.
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Electronic Signing of Contracts

Part 4 of the Contracts and Commercial Law Act 2017 ("CCLA") provides that, with some few exceptions, where a signature is required by law (including to conclude a contract) you can sign that document electronically provided certain conditions are met. An electronic signature is defined in the CCLA as a method used to identify a person and to indicate that person's approval of that information.
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Construction Contracts: Contractual Framework for Navigating Through Covid-19 Alert Level 4 (NZS 3910:2013, NZS 3915:2013, NZS 3916:2013 & NZS 3902:2004)

Parties to construction contracts, especially those contractors (and subcontractors) who are engaged to carry out particular contract works by an agreed due date for completion, may be exposed to penalties or "liquidated damages" if unable to carry on or complete those works during the Covid-19 Alert Level 4 lockdown.
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Hardship - Consumer Credit Contracts Under a Covid-19 Related Lockdown

Section 55 of the Credit Contracts and Consumer Finance Act 2003 ("CCCFA") provides that a person who is unable reasonably, because of illness, injury loss of employment, the end of a relationship, or other reasonable cause, to meet their obligations under a consumer credit contract and who reasonably expects to be able to discharge their obligations if the terms of the contract were changed as provided for under the CCCFA may apply to a creditor to agree to that change. In the present Covid-19 lockdown, we expect these provisions to be tested and both debtors and creditors need to know their rights and responsibilities in these sorts of situations.
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Frustration, Force Majeure and Covid-19

The Covid-19 pandemic and the announcement of the Level 4 Covid-19 threat level in New Zealand has meant that many businesses may be forced to default on their commercial obligations, especially as non-essential businesses are told to close. However if their contracts contain a "force majeure" provision, this may provide them with a way out.
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Construction, Builders, NZS3910 Building Contracts and Covid-19

At a press release on 24 March 2020 at 1.00 pm a spokesperson for the Ministry of Business, Innovation and Employment (MBIE) said: "If you are in doubt whether you are an essential service, you're probably not".
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