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Category: Corporate & Commercial

  • Contracts of guarantee are ubiquitous in the commercial and personal legal landscape.

    10 October 2019

    In our experience, they are sometimes agreed to as an afterthought when the primary agreement terms have already been negotiated in detail and are just as quickly forgotten when the dust has settled.A contract of guarantee (Guarantee) is a contract under which a person (Guarantor) agrees to answer to another person (Obligee) for the debt default or liability of a third person (Obligor). A Guarantor does not directly undertake the obligations of the Obligor. The Guarantor assumes liability only when ...

  • The differences between an indemnity and guarantee

    30 January 2019

    The differences between a guarantee and an indemnity are often overlooked and underappreciated. Indeed, it is not uncommon for people to mistakenly view the two obligations as synonymous.In commercial transactions, parties are often asked or required to provide a guarantee, an indemnity, or both. These types of obligations can usually be found in everyday commercial contracts such as supply agreements and loan documents.It is, therefore, important to understand and appreciate what the differences are between a guarantee and an indemnity ...

  • Overseas Investment Act – Amendments have legal effect

    1 November 2018

    Amendments to the Overseas Investment Act 2005 (OIA) that restrict certain overseas people from buying residential land in New Zealand reported in our September newsletter came into force on 22 October 2018.The new provisions affect the purchase of land that is rated as a residential or lifestyle property (residential land). This includes apartments, townhouses, and standalone dwellings in use unit title developments.The effect of the amendments requires overseas persons to obtain consent from the Overseas investment Office (OIO) under the OIA ...

  • All for One and One for All?

    1 November 2018

    The allocation of costs for significant repairs to unit title developments can be a very contentious issue. A recent decision of the Court of Appeal in Gu v Body Corporate 211747 [2018] NZCA 396 provides further guidance for bodies corporate and unit owners.The case relates to a mixed use building in Eden Terrace, Auckland. A reinstatement scheme under section 74 of the Unit Titles Act 2010 (UTA) had been settled by the High Court in October 2011 to provide for ...

  • Sale of Common Property

    3 October 2018

    Does your Body Corporate have surplus land? If the answer is “yes,” then we can look at whether the sale of common property is a possibility for your body corporate.There are two ways, processes, in which the sale of common property can be achieved. The first is where part of the common property is sold, and a new principal unit or accessory unit within the same body corporate is created.The second is where part of the common property is sold and ...

  • ACP Cladding and the Suspension of CodeMark Product Certification

    3 September 2018

    In the aftermath of the Grenfell Tower disaster, there has been a renewed focus on the types of cladding used on buildings in New Zealand. This is because the use of Aluminium Composite Panel (ACP) cladding was considered to be a major factor in the speed and spread of the Grenfell Tower fire.Essentially, ACP cladding is a sandwich of two thin aluminium sheets with a binding core made up of polyethylene and/or a mineral combination. ACP cladding is popular because ...