Kavanagh v Continental Shelf Company (No 46) Ltd - [1993] 2 NZLR 648

Local Government — Liability of council — Agent signing contract to buy land without authorisation under Public Bodies Contracts Act 1959 - Application to strike out causes of action based on breach of warranty of authority and negligence by the council's agent and vicarious liability of council — Whether a cause of action in negligence could co-exist with a cause of action for breach of warranty of authority by the agent — Whether the council could be vicariously liable for the negligence of its agent — Public Bodies Contracts Act 1959, s 3.

Negligence — Duty of care — Policy considerations — Agent signing contract to buy land without authorisation under Public Bodies Contracts Act 1959 - Application to strike out — Whether breach of warranty of authority could co-exist with action in negligence against agent — Whether council could be vicariously liable for the negligence of its agent — Public Bodies Contracts Act 1959, s 3.

Agency — Authority of agent — Agent signing contract on behalf of local authority to purchase lessee's interest in business — General authority to sign contracts up to certain value — Purchaser induced to enter contract by agent's conduct — Local authority failing to settle contract — Vendor's action for breach of contract — Whether sufficient evidence of proper authority to raise arguable cause of action against local authority — Public Bodies Contracts Act 1959, s 3.