Yang Li claims the amended price on an agreement to sell her south Auckland rental for $1.14 million was simply a ploy to drive up the price in future negotiations. Not so, the High Court ruled. It led to a binding sale at that price.
Ms Li appointed LJ Hooker as agents to sell her rental property on Bremner Road, Karaka, at an asking price of $1.35 million. Close friend Eric Fang worked for Hooker. In August 2020, he presented a signed offer from Congmei Ma, offering $1.08 million. Any increase in offer price from Ms Ma was unlikely, he said.
The High Court was told Ms Li amended the offer price to $1.14 million, initialled the amendment, and signed as vendor. This was a ploy to attract interest from other buyers at a higher price, she said. She had no expectation that the $1.14 million counter-offer would be presented to Ms Ma. The counter offer was agreed and signed by Ms Ma when Mr Fang presented her with the amended sale agreement. Ms Li denied there was a binding contract. Mr Fang had no authority to present the $1.14 million counter offer to Ms Ma, she said.
Associate judge Andrew ruled the contract enforceable at $1.14 million. Mr Fang acted within terms of Hooker’s listing agreement by presenting the counter-offer to Ms Ma. Her acceptance of this counter-offer created an enforceable contract.
Ma v. Li – High Court (14.04.21)
21.067