Contacts established prior to September 1, 2017 are subject to a number of transitional provisions set out in Annex 1 of CCLA. CCLA in its entirety applies to contracts entered into on or after September 1. The Contract and Commercial Law Act 2017 (CCLA) is the newest child on the bloc in the New Zealand commercial law landscape. CCLA was passed earlier this month and will come into effect on September 1, 2017. On 1 September 2017, the new Contract and Commercial Law Act 2017 entered into force. The provisions of the Act generally reproduce their predecessors. However, the wording of some provisions has been updated to be more user-friendly. In addition, some minor amendments have been made to a limited number of provisions, including those relating to the sale of goods and contractual errors, in order to clarify Parliament`s intention or to reconcile disagreements. Detailed information on these changes can be found in Schedule 2 of the Act. The modernized language of the PROVISIONS OF THE CCLA applies to contracts entered into before September 1, 2017 (i.e. (a) above).
The Act does not make significant amendments to the Act. It applies to contracts, whether concluded before or after the entry into force of the law. This is a revision act, so apart from very minor changes to reflect Parliament`s intent or address inconsistencies, no changes are made to the previous legislation. Instead, CCLA sets out in one place various legal provisions that are relevant to contractors with respect to their contracts, particularly with respect to how they sell goods and provide services. However, minor changes in legal effect (i.e. (b) above) do not apply to these contracts. Instead, the law applies, as expressed in the original (albeit repealed) law. CCLA will repeal a number of existing trade laws (the original statutes). The provisions of these original Acts are then consolidated into CCLA.
These original statutes are as follows: This may also be a good time to verify that model contracts and other documents contain appropriate interpretative clauses that expressly state that references to applicable laws and certain laws or regulations must be interpreted in such a way as to keep pace with legislative changes (including consolidations, amendments, recasts or replacements of such Acts or regulations). On 1 September, the Contract and Commercial Law Act 2017 (CCLA) comes into force. CCLA is the result of a comprehensive review of the Act to make the Statutes within its scope more accessible, readable and understandable by placing Statutes more logically, eliminating inconsistencies and overlaps, repealing outdated and redundant provisions, and modernizing the expression, style and format of statutes. Although the title of the Act proposes a revision of all contract and trade laws, a number of important commercial laws, including the Fair Trading Act 1986 and the Personal Property Securities Act 1999, are excluded from the amendments to the Act. The New Zealand Contract and Commercial Law Act 2017 is the first piece of legislation drafted in accordance with the powers of review contained in the Legislation Act 2012, which allows, inter alia, for the consolidation and reformulation of several laws in accordance with modern language and design style. This article, written in the form of a conversation between a law student and her contract professor, attempts to evaluate the law. The tenor of the conversation is that the law has not achieved its primary purpose of making the law more accessible. If you own, operate or manage a business, the practical consequence of CCLA is that you must ensure that your contracts with customers, including your standard form requirements, are drafted in accordance with the law set out in CCLA. Their contracts should now all relate to CCLA and not to any of the repealed statutes. CCLA`s timelines will be useful in considering CCLA`s impact on existing contracts. In particular, Annex 2 specifies which provisions have been subject to minor changes in legal effect and which, therefore, do not apply to contracts prior to 1 September 2017. The new law aims to modernize and consolidate the laws relating to contracts and commercial transactions.
The CCLA replaces and repeals 11 commercial laws, including the Contract Remedies Act of 1979, the Sale of Goods Act of 1908, the Contractual Errors Act of 1977 and the Contracts (Relations) Act of 1982. If you would like to discuss CCLA or your contracts with customers and/or clients in general, please contact one of our sales teams who will be happy to discuss it with you. It may be helpful for internal practitioners to now review their organization`s standard terms and conditions or other model documents that reference one of the original bylaws so that updated versions can be prepared and signed in advance for use as of September 1, 2017. If you have terms and conditions or other contracts with customers relating to laws that have now been repealed, such as . B the Contracts (Relationships) Act 1982 or the Carriage of Goods Act 1979, you need to update them to refer to the relevant provisions of the Contracts and Commerce Act. The law applies to all contracts entered into on or after September 1, 2017. Previously concluded contracts are subject to the updated language of the law, but are otherwise subject to the original laws. CCLA does not intend to substantially amend the law, but domestic practitioners need to be aware that some important trade laws will be repealed and how CCLA`s transitional provisions will work in relation to these repealed laws. Organizations should also consider whether their general terms and conditions or other standard contracts and documents need to be amended as of September 1, 2017 to reflect the introduction of CCLA. If you have any questions or need help updating your contract templates, please do not hesitate to contact us.
With the new Contract and Commercial Law Act coming into force on 2017 on 1 September, it is the perfect time to review your commercial contracts. If there is an explicit reference to a law repealed in an existing agreement (such as the Contracts Act 1982 (Privity)), a court will usually read this as a reference to the new law, and many contracts will include an explicit instruction to that effect in the interpretative section. The Act is administered by the Ministry of Justice and the Ministry of Economy, Innovation and Employment. When CCLA comes into force, the following Acts will be repealed (and replaced by CCLA): Note 4 at the end of this reprint contains a list of added amendments. In this official reprint, amendments were made that were approved to subsection 2 of Part 2 of the Legislative Act, 2012. Contributed by: Emmeline Rushbrook, Dominic Rowe, Polly Pope, Adrian Olney, Mei Fern Johnson and David Raudkivi 14 pages Published: 20 Dec 2018 Last revised: 7 Oct 2019 From a practical point of view, the upcoming introduction of the law provides the right time to review and update all previous documents specifically related to the repealed laws. If you would like more information or need help with the transition to the law, please contact our Corporate and Commercial team. A draft of the bill was made public from October 21 to December 7, 2015. Eight submissions were received. (NB: for a detailed comparative table, see Schedule 3 of the Act) The repealed Acts are reconfigured in the Act as follows: This Act indicates the Government`s intention to modernize our legislation as part of its legislative review program .. . .