Ballance Agri-Nutrients (Kapuni) Ltd v The Gama Foundation

Ballance leased a Christchurch industrial property. In April 2001, Ballance had given 6 months notice that they were terminating the lease. At this date, the property was originally owned by Gama Holdings, but on 10 June 2001, ownership was transferred to the related company Gama Foundation.

Ballance were not notified of the sale at the time.

Due to the fact that the sale was a related party transaction, the sale was not registered until 9 months later in January 2002.

This delay caused problems for the landlord, when they sought payment for damages to the property, forcing Gama to seek payment as a permitted assignor under section 4 of the Contracts (Privity) Act 1982.

Ballance disputed that Gama Foundation was a permitted assignor.