A hearing has begun at the High Court in Auckland involving hundreds of investors caught up in the collapse of finance company Blue Chip.
More than 240 investors say their apartment sale and purchase agreements are void and they should not be forced to honour them.
The case involves three apartment building development companies.
The lawyer for the investors, Paul Dale, says the contracts have been cancelled, are unconscionable and unenforceable.
Mr Dale says Blue Chip was deceptive and misled the investors, with most of the contracts void under the Securities Act.
Bruce Stevens, QC, the lawyer for development company Greenstone Barclay says investors understood that they were signing sale and purchase agreements.
Mr Stevens says the contracts had been agreed to by investors and should be enforced.
The case is due to take six weeks.