Catley v Herbert [1988] 1 NZLR 606 is a cited case in New Zealand regarding whether a contract illegal under law, can be subsequently validated under the Illegal Contracts Act 1970.

This sale entailed the selling of some of the company property in order to purchase his shares.

As a result, Herbert refused to pay Catley, on the basis that to do so would be illegal.

Footnote: This case is often discussed with NZI Bank Ltd v Euro-National Corp Ltd [1992] 3 NZLR 528, where a similar transaction that also contravened section 62(1) was not validated

This article relating to case law in New Zealand is a stub.