The Power Co Ltd v Gore District Council - [1997] 1 NZLR 537

Administrative law — Judicial review — Statutory discretion — In 1927 power board entered agreement with borough council to acquire electricity assets and undertaking — Agreement to fix charge for electricity supplied to borough council "for all time hereafter" — Whether this amounted to an unlawful letter of the statutory discretion — Whether agreement ultra vires — Whether board in breach of implied duties to charge equitably among consumers — Electric Power Boards Act 1925 (rep), ss 9 and 76.

Contract — Interpretation — Implied term — Agreement of indefinite or perpetual duration — In 1927 power board entered agreement with borough council to acquire electricity assets and undertaking — Agreement to fix charge for electricity supplied to borough council "for all time hereafter" — Significant intervening impact of inflation — Whether a term should be implied allowing the contract to be terminated on notice after a reasonable time had elapsed.

Contract — Interpretation — Frustration — In 1927 power board entered agreement with borough council to acquire electricity assets and undertaking — Agreement to fix charge for electricity supplied to borough council "for all time hereafter" — Significant intervening impact of inflation — Whether impact of inflation had radically changed the obligations contemplated by the parties when the contract was entered — Whether contract frustrated.