Cycle Manufacturing Co Ltd v Williamson - [1993] 1 NZLR 454

Contract — Cancellation — Purchase of shares in holding company owning three trading subsidiaries — Warranty as to solvency — Whether breached meaning of solvency — Whether company relying on extended terms of credit was solvent — Whether warranty referred to the holding company only or to the whole group — Whether purchaser entitled to cancel.

Contract — Breach — Waiver or affirmation — Purchaser continued to trade after becoming aware of the breach — Whether delay in cancelling the contract amounted to waiver of the breach.

Contract — Damages — Cancelled agreement for sale and purchase of shares — Whether purchaser may recover profits that would have been made in addition to the money paid.