GUM-CLEANING INVENTION.

New Zealand Herald, Volume LV, Issue 16903, 16 July 1918, Page 6

GUM-CLEANING INVENTION.

ALLEGED BREACH OF AGREEMENT. Legal argumont was heard before Mr. Justice Cooper, at the Supremo Court yesterday, in an action relating to an alleged agreement for the sale of patent rights, commenced somo weeks ago. In this case John E. Nicholson (Mr. Ostler), of Mangawai, a gum-buyer for the Now Zealand Government, sought to compel the New Zealand Gum Machines Company, Limited, of Auckland (Mr. Mowlem), to perform an agreement to sell him the foreign patent rights of an invention for the cleaning of kauri and other gum, and also to pay royalties accruing under those rights an alternative claim being £500 as alleged damages. The plaintiff's claim set forth that in September last he wroto a letter to the defendant company applying for an option for the purchase of trie rights in question at £370, and received in reply a letter of acceptance, but subsequently the arrangement was repudiated by the defendant company as being invalid. The defence filed was that the option had been obtained as the result of the illegal appointment of certain persons to tho directorate of the company; that it was not given by the company, or by any person having authority to enter into contract!; and that the plaintiff was induced to apply for the option by some person or persons holding fiduciary positions under the company, Mr. Mowlom had moved for a ronsuit on the ground that it had not been proved that a contract had been concluded. Ha submitted that tho transaction was not such a contract as could bo enforced. His Honor had reserved the nonsuit point, also another point that there was no evidence of any attempt by the plaintiff to exercise the option. Argument on these law points was heard yesterday, and upon further points raised by Mr. Mowlem dealing with tho constitution of the directorate of the company. Judgment was reserved.