What is dead is dead and cannot be resurrected, the High Court said after a property developer tried to breathe life back into a cancelled contract before being ordered to repay a $182,000 deposit.
In 2021, Auckland joint venture builder P.S. Construction Ltd owned 50/50 by Yankai Pang and Sheng Sun put down a $182,000 deposit for a section in a subdivision to be developed by Yu Zhang’s Premier Building Services.
Mr Zhang had until end of March 2023 to get clear title to his planned subdivision. That did not happen.
The High Court was told lawyers for P.S. Construction sent an email at 5.11 pm on deadline date in March 2023 cancelling its contract.
Two hours later, an email came back from Mr Zhang’s lawyers saying the contract still stood; a clause in the contract allowed the vendor to give notice of a six months’ deadline extension.
They said wording in the 5.11 pm cancellation email left open the possibility of this contract extension taking place.
Associate Judge Lester ruled the 5.11 pm email merely noted that no extension had been arranged. P.S. Construction was entitled to cancel any time after 5.00 pm, and had done so.
The contract was at an end.
Mr Zhang’s Premier Building was ordered to repay the $182,000 deposit received some nineteen months previously.
P.S. Construction Ltd v. Premier Building Services Ltd – High Court (5.02.25)
25.061