SALE OF BUSINESS

Dominion, Volume 27, Issue 59, 2 December 1933, Page 21

SALE OF BUSINESS

Recovery of Money Sought DECISION OF COURT Reserved judgment was delivered by Mr. W. F. Stilwell, S.M., in the Magistrate’s Court on Thursday in a case in which George Thomson brought proceedings against James Stunt for the recovery of certain moneys relating to (he sale of the Empire iish and chips shop, 54 Vivian Street, The business was sold by Thomson to Stunt on July 4, the purchase price being £125, £25 of which was payable on July 4, and £lOO on July 15. Defendant Stunt refused to complete the transaction, one of the defences being that if the court held that legal effect of the agreement for sale and purchase was contemplated by him, and acceptance was communicated, then he was entitled to avoid the contract on the ground of misrepresentation as to the takings and profits of the business. The magistrate sttid there did not appear to have been any oral represen-, tation as to takings except for the three mouths, May to August. He had gone back further and reviewed the figures from February to May, and taking plaintiff’s margin of profit at 39 per cent, which he thought was reasonable, he found bis average profit for that period a little over £(>. He could not find, therefore, that plaintiff had misrepresented tlie business either as to takings or profits in any material particular, and the defence on that head must fail. . Judgment must therefore be m favour of plaintiff. As to damages, he thought the sum of £39/12/- would cover all heads of damage suffered, and judgment was entered for plaintiff for that sum. At the hearing. Mr. A. L. Hollings appeared for plaintiff, and Mr. J. M. Gault for defendant.