User:Hoodynz/HBF Dalgety v Morton

This is a prominent NZ court case (1 NZLR 411 [1987]) regarding the legal issue of accord and satisfaction.

HBF Dalgety Ltd was a real estate agency that sold a farm on behalf of Mr Morton, for which they duly invoiced him their normal fee of $9,768.98.

Soon after receiving this invoice, the defendant sent the plaintiff a cheque for only $2,450, attached to a copy of the original invoice with the vague note on it of "my estimate of costs on a 'work done' basis, $2,450".

Despite this note, the plaintiff still banked the cheque, however they immediately sent a letter to the defendant informing him that they did not accept this cheque as full settlement of his account.

The defendent then refused to pay the balance, and the plaintiff then sued him for the balance of the account.

It was held by the court that there was no accord and satisfaction due to the absence of any genuine dispute on the account, and according ruled in favour of the plaintiff.