Otago Station Estates Ltd v Parker

The case of Otago Station Estates Ltd v Parker involved a dispute between the parties over the mode of payment for a deposit under a land sale agreement. The vendor, Parker, objected to the purchaser, Otago Station Estates, tendering a personal cheque to pay the deposit, arguing that it was not legal tender as required by the contract. The purchaser had tendered the cheque in response to a notice from the vendor to remedy a default in payment. The High Court and Court of Appeal both found in favour of the vendor, ruling that the personal cheque did not constitute good tender and that the vendor was entitled to cancel the agreement. The Supreme Court of New Zealand dismissed the appeal, agreeing with the lower courts that a personal cheque is not legal tender for the payment of a deposit and that the vendor was entitled to reject it. The Court held that the requirement for legal tender or its equivalent must be strictly adhered to unless the vendor explicitly agrees to accept a personal cheque. The decision underscores the importance of certainty in payment for the vendor and the need for the purchaser to comply with the contractual requirements for payment of the deposit. The Court also rejected arguments that the practice of accepting personal cheques implied a waiver of the requirement for legal tender or that the vendors were required to specify that personal cheques would not be accepted.