BUYING A BUSINESS.

Auckland Star, Volume LVI, Issue 285, 2 December 1925, Page 12

BUYING A BUSINESS.

MISREPRESENTATION NOT PROVED "Tt is a mystery that people will pay £200 to £300' for a business without first spending a few*guineas for .art'auditor to ascertain |ro;_ the books what the actual profits arc," said Mr. F. K. Hunt, S.M., yesterday afternoon when giving judgment in' a case that had occupied the greater part of the day. A. E. Kennedy (Mr. Nutsford) sued I. C. Waters, with' whom was joined L. F. *Bates (Mr. Alan Moody), to recover £150 for alleged misrepresentation in connection with the sale and purchase of a fruiterer's business. The price.paid was £250, and included'a lease of tljes'.premises for four and a half years. Plaintiff alleged he bought on the representation of defendants that the takings- were £70 per week. He stated the takings did not reach near that figure. Plaintiff admitted he was shown the books .before lie purchased the business. Defendant said he bought' a vacant shop in December, 1924, at £124. .That was for possession and fittings. He stocked the shop with fruit and soft drinks. When he sold to plaintiff the stock was worth £43 7/0, and there were also eight cases of oranges in the freezer. When plaintiff came to buy the business I witness told him the takings were about £70, sometimes less and sometimes more, also that last January the receipts were as low as £35. Witness showed by "the books what the business was like at that time. Witness said lie had banked £120 out of the business in four months. L. F. Bates stated she worked on wages for Mr. Waters, and was not a partner in the business. Mr. Hunt said in this case the books were - produced for examination before tlie purchase of the business. He could not hold that any misrepresentation had been proved. Judgment was entered for the defendants, with costs.