Liebherr Export AG v Ellison Trading Ltd

Liebherr Export AG v Ellison Trading Ltd is a New Zealand legal case regarding certainty in contract formation.

[1][2] Ellison Trading was the sole New Zealand distributor of machinery for Liebherr Export since 1977.

In November 1993, suddenly informed Ellison during a dinner that Liebherr Australia was taking over the New Zealand distributorship.

Liebherr eventually walked away, claiming they had no legal obligation to purchase the stock.

A less than impressed Ellison sued Liebherr under the agreement to purchase the stock, which Liebherr defended that they denied even making the offer to purchase, and if they did, they claimed that the term "fair and reasonable" lacked certainty and therefore made such a contract not legally enforceable.