title: Markholm Construction Co Ltd v Wellington City Council
text: # Markholm Construction Co Ltd v Wellington City Council
  
  Markholm Construction Co Ltd v Wellington City Council [1985] 2 NZLR 520 is a cited case in New Zealand regarding contract formation.
  
  ## Background
  
  The Wellington City Council had advertised sections for sale by ballot in a new subdivision. After finding this ballot heavily oversubscribed, the council realised that the sections had been significantly undervalued.
  
  As a result, the council refused to go through with the ballot, and cancelled the ballot.
  
  The Markholm's sued the council for specific performance for the contract - to go through with the sale of the sections by ballot.
  
  ## Held
  
  The court ruled it was a legally binding contract. However, the court refused to order specific performance given the odds of winning in the ballot, and damages instead were awarded.
  
  