SALE OF HOTEL LEASE

Dominion, Volume 13, Issue 309, 23 September 1920, Page 5

SALE OF HOTEL LEASE

REFUND OP DEPOSIT CLAIMED. In the Magistrate's Court yesterday, beforo Mr. J. S. EVans, S.M., Christian Cliristtonsen, of South Korsewood, proceeded against. James SteJlin, of WeJlincton, to recover the Bum of £100 paid by the plaintiff by way of deposit in reßpect to tho purchase of tho lease of the Bailwnv Hotel, Waitotara, together with £50 as damages. The agreement for sale was made cn January 14, 19Z0; tho lease was to bo for five years from February 17, 1920, at a rental of £6 per week; tho purchaser to pay £250 for tho goodwill of the leasoj and £1000 for the goodwill of tho business. The premium of £1250 wbb to bo paid by a payment of £100 by way of deposit, £500 in cash on settlement, and tho balanco by promissory noteß fcy equal amounts extending over two years, with inter?Bt at 8 per cent. Tho plaintiff said he paid £100 on oeposit, and on February 28 ho received two telegrams from the defendant's aolioitorc, and a telegram from defendant's agonts, l.'wan 1.11"o3., to meet defendant at Waitotara tho following day. Plaintiff complied with this request as poon as possible, and met defendant on March 1, and offered to talto jossession at the cud of that v.'cok, but de'tndant rofused, and still refused to gi'vo possession. The defendant counter-claimed for £200 for damages for repudiation of the contract. The defence vras 'hat the deposit was held as a guarantee for the due fulfllmont of tho contract, and was forfeited because .tho lilr.intiff railed to tender the purchase inouey and take possession, iu accordance with tho iicvocmeiit; and .'jrtlier, that he -.vas liable for damages on the counter-claim for thuß repudiating the contract. . Mr. W. Terry appeared for plaintiff, and Mr. T. Youns for defendant. Th 9 Magtofefftta rwcrvfcd bis eooism,