Holmes v Australasian Holdings Ltd - [1988] 2 NZLR 303

Contract — Sale of land — Agreement for sale and purchase — Principal terms settled in oral negotiations — Contract then signed by vendor and delivered to purchaser — Vendor withdrew before contract had been signed by purchaser — Whether parties intended to be bound before both had signed contract — Whether purchaser was entitled to damages for breach.

Property law — Caveat — Application for extension — Undertaking as to damages — Purchaser lodged caveat to protect interest in alleged contract to purchase land and then sought order that caveat not lapse — Order made subject to purchaser giving undertaking as to damages — Purchaser gave an undertaking as to damages — Caveat subsequently lapsed — Vendor sought damages under s 146 of the Land Transfer Act and pursuant to undertaking — Whether caveat had been lodged without reasonable cause — Whether Court had jurisdiction to require undertaking — Whether vendor was entitled to damages — Land Transfer Act 1952, ss 145 and 146.