PROPERTY TRANSACTION.

Auckland Star, Volume XLVII, Issue 64, 15 March 1916, Page 8

PROPERTY TRANSACTION.

AN INTERESTING POINT.

,WEXT BACK OX AGREEMENT. (By Telegraph.—Own Correspondent.) HAMILTON", this day. An interesting point affecting property transactions and commissions was discussed before Mr. Justice Cooper at the Hamilton Supremo Court yesterday during the hearing of a case in which Paul Collycr, farmer, of Te Awamutu, claimed £500 damages for alleged breach of contract from James Nliiels, storekeeper, of Hamilton. Jlr. K. H. Watts appeared for plaintiff, and Mr. C. L. AlcDiarmid for defendant. The statement of claim set out that defendant made a written offer to plaintiff's agent, T. Mandeno Jackson, to exchange property situated at the corner of Victoria and Liverpool Streets, Hamilton, for a farm property of plaintiff. The offer wns to remain open for ten days, and within this period plaintiff accepted it. Defendant subsequently repudiated the contract. Mr. McDinrniid agreed as to the facts, and said the only question was the assessment of damages. Mr. Watts said plaintiff's damage consisted of the payment of commissions, which would probably amount to 1150, and loss on delay and outgoings from the farm property. His Honor siiggx."stctl that the commission should he. payable only on the excess of value of the property over the mortgages thereon. Mr. Watts said that if his client had to pay commission, it was an element of his damage. His Honor questioned if this point could he set up. If a vendor made an outrageous agreement with his agent, surely that would not bind the other party to the transaction in an action between the parties. Jlr. Watts suggested that if commission was payable only on the excess of value over the mortgages, there would be no commission allowable at all if the mortgages came right up to the value of the property. His Honor said the fact that defendant was paying no commission at all might be take,n into account. At this stage counsel for both parties conferred, and agfeed to judciucnt going in favour of plaintiff for £150.