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Bird v Bicknell

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Bird v Bicknell
CourtHigh Court of New Zealand
Full case name David Bird and Denise Beatrix Bird v Janice Bicknell, Dominic Faanoi, Dennise Faanoi, Ceedric Rodrigues and Robert Martin
Decided23 September 1987
Citation[1987] 2 NZLR 542
Transcripthttp://www.nzlii.org/nz/cases/NZHC/1987/277.pdf
Court membership
Judge sittingHillyer J

Bird v Bicknell [1987] 2 NZLR 542 is a cited case in New Zealand regarding fraud merely being a factor (albeit an important factor) in determining whether an exclusion clause is valid or not.[1] It is contrasted with M E Torbett Ltd v Keirlor Motels Ltd where is held that an exclusion clause is simply not valid where a party has committed fraud.

Background

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Bird was in the business of selling franchises regarding a chemical process, which they told Bicknell was secret only to them, and that a patent application was pending. These claims were later discovered to be fraudulent, and Bicknell refused to make the final payment on his franchise. Bird pointed out the contract had a clause agreeing to no warranties were given about the patent.

Bird sued Bicknell.

Held

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The court found that the exclusion clause was not "fair and reasonable".

References

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  1. ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (January 2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. 243. ISBN 0-86472-555-8.