GREYTOWN

Wairarapa Times-Age, 27 February 1940, Page 7

GREYTOWN

INTERESTING JUDGMENT RESPONSIBILITIES OF LAND AGENTS. (“Times-Age” Special.) A judgment important to vendors of property' and land agents has been delivered at Greytown by Mr H. P. Lawry. S.M., in which Robert D. Vance, hotel proprietor. Greytown, sued William Butler and Co, land agents, Wellington, for the balance of deposit monies paid as a deposit by the prospective purchaser of his interest in the Club Hotel, Greytown, and also for damages arising out of the purchaser’s financial inability to complete the purchase. The defendant land agents counter-claimed for commission on the uncompleted sale.

The plaintiff Vance, alleged that William Butler and Co by its agent introduced to him a buyer, and that the agent represented that the buyer was financially able to pay cash on completion of the deal. Plaintiff thereupon, on such representation by the agent entered into an agreement for sale to the purchaser introduced, of the lease of the hotel and contents. The prospective purchaser was unable to complete the sale by reason of lack of finance. The Magistrate found that the failure of the purchaser to complete the purchase was due to his inability by reason of his lack of means, that the representations by the agent as to the financial ability of the purchaser were false, that the defendant had not made sufficient enquiry into the means of the purchaser to warrant the making of such representations, but that while not being aware of their falsity, the representations were made negligently. The Magistrate held that agents for the sale of property owe certain duties to their principals and that failure in material duties disentitles them to commission. Further, an agent who in breach of his duty to his principal, induces him by negligent misrepresentation to enter into a costract is liable to make good to the principal the loss arising therefrom.

After quoting lengthy legal authorities the Magistrate gave judgment for plaintiff for the amount of £63 15s retained by the defendant agents as commission and for £2B Os lid, the costs and disbursements incurred by the plaintiff on the abortive sale, together with the costs agreed upon by the parties..

Security for appeal to the Supreme Court was fixed on the application of the defendant. Mr J. F'. Thompson (Greytown) appeared for plaintiff and Mr J. S. Hanna (Wellington) appeared for defendant.