MANAKAU HOTEL.

Evening Post, Volume LXXXII, Issue 42, 18 August 1911, Page 11

MANAKAU HOTEL.

■ ■" m ' i EFFECT OF AN ENDORSEMENT. StfpRSME COtTrT ACTION. Yesterday Mr, .Justice Sim heard an application in the mattei 1 of a contract dated 3th January. 1911, for the sale and purchase of the freehold* of the premise* known as the M&nakan Hotel, Maaakaii) made between Thomas Bevan, jun., Manakau, eettler, and Evie Ken* t»dy, of WeHingtcfl, widow. Plaintiff, Evie Kennedy, asked, on an originating 6ttnwnoMr*that, it be declared that «ac wa« emtitled to w«cin3 the contract, and was corwe«uently entitled to recover the deposit of £50, . In a statement of facte agreed upon, it «s« eet <vat tJiat the Irotel va« sab^ jeefc to a ieae« td Edwin Samuel Rainbow f»f ten yeans, whi^h expired on sth March, 1911, The ies#6 wa® in May. 1907, transferred ta George Wikon Moorhot»?, who is *till in p&teeGsion, and is the licensee. Oft 4th November. 1910, Moorhouse was convicted on a. charse of permitting drunkenness, and the conviction was endorsed on his license, Th« plftintiff agreed to purchase the freehold lot £3000, subject to the lease, and upon execution a deposit of £50 wa* paid, On, or About 23rd June, 1911, plaintiff learned that the conviction, was endorsed on the license, and thereupon, refused to complete to purchase, and demasried the return of the deposit. Plaintiff wae not previously aware of the endorsement, and no representation was made on the subject by defendant. The fact of the endorsement was not intentionally withheld by defendant, The question i« whether plaintiff was by reason of the endorsement or of such non-disclosure, entitled to rescind the contract and to recover the deposit. The price was fixed by the agreement at £3000 if continnanee wei-e carried at the ensuing poll, and £2000 if it were hot carried^ Mr, 'J. Young appeared for plaintiff, and Mr, C, B. Morison for defendant. fiis Honour reserved his decision.