Walsh v Kerr - [1987] 2 NZLR 166

Contract — Breach — Misrepresentation — Purchasers purchased hotel subject to a lease on the representation that performance of the tenant's obligations was fully guaranteed by a substantial public company — After settlement, purchasers ascertained that the guarantee had been varied to release the guarantor if the lease was assigned to an acceptable assignee — Whether misrepresentation induced entry into contract — Whether damages should be assessed by valuing missing quality per se or by assessing market value of property as represented less its market value in fact.

Practice and procedure — Costs — Plaintiffs established misrepresentation as inducement to enter contract to purchase hotel but failed to establish any legally recognised loss — Whether plaintiffs were entitled to judgment — Whether plaintiffs should be awarded costs.