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Dysart Timbers Ltd v Nielsen: When Will a Change of Circumstances Prior to "Acceptance" Cause an Offer to Lapse?

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Date

2010

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Te Herenga Waka—Victoria University of Wellington

Abstract

This paper analyses the approach that is taken by the New Zealand Supreme Court in Dysart Timbers Ltd v Nielsen to the question of whether and when an offer to enter into a contract will cease to be capable of acceptance due to a change of circumstances that has occurred after the making of the offer but prior to any purported acceptance by the offeror. The “majority approach” adopted in Dysart Timbers is criticised and support is provided for the dissenting analysis of McGrath J. It is argued that an approach consistent with the objective principle to contract formation is the most appropriate method of analysis and ought to be employed by the courts in determining the aforementioned issue.

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Keywords

Contracts

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