Warranty vs due diligence

On 28 March 2007 Mr and Mrs Singh, experienced orchardists, signed up to purchase a lemon and kiwifruit orchard in Glenbrook.  The standard form of agreement for sale and purchase of real estate was used.  A due diligence clause was inserted, giving the purchaser 5 working days to satisfy itself as to a "due diligence…

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The insurance business – time to stay in or get out

The new Insurance (Prudential Supervision) Act comes into force in March 2012.  Under the new Act, insurers will need a licence from the Reserve Bank to continue in the insurance business.  The licensing application involves satisfying the Reserve Bank that the insurer has the appropriate risk management, governance and capital necessary to continue in the…

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Void Purchase Agreement – A Good Reason Not To Settle?

A number of property subdivisions completed within the last 2 or 3 years were originally pre-sold at levels well above market value at the time of settlement.  This is no surprise to any of us who have lived through the GFC and its impact on the property and finance sector in New Zealand.  As a…

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New Securities Act

 The Government has recently released the proposed draft Financial Markets Conduct Bill (Bill).  The Bill represents a comprehensive review of securities law.  It will replace the existing Securities Act. The Bill removes the troublesome concept of “offer to the public”.  Instead, unless an exemption applies, disclosure is required.  Disclosure is made using a single product…

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Venture capital start up – “ground up” legal structure

Many new business are founded on great ideas.  Often, they find an “edge” or niche in the market that others have not thought of yet.  This is the role of entrepreneurs.  They invariably need help creating a “ground up” legal structure.  The structure will vary depending on the size and sophistication of the business.  A…

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