LAND SALE DISPUTE.

New Zealand Herald, Volume LVII, Issue 17660, 22 December 1920, Page 8

LAND SALE DISPUTE.

AGENTS SUE ON CLIENT'S P.N.

JUDGMENT FOR AMOUNT.

Reserved judgment in an interesting case was given, by Mr. J. W. Poynton, S.M., in the Magistrate's Court yesterday. Coughey Bros. (Mr. Jacobsen), land agents, sought to recover from J. R. Henshaw (Mr. Moody) £125, being the amount of a promissory note claimed to have been made by defendant, and payable to plaintiffs on demand. The promissory note was given to plaintiffs as a deposit by defendant when he made an offer for a property in their hands. The property was then under offer to another person, and defendant's offer had toawait the result of the prior offer. This offer being refused, defendant was informed by telegram that his offer was accepted. This information by telegram had previously been arranged. Defendant, in the meantime, had changed his mind, and had sent a letter by post withdrawing his offer. There was nothing in the arrangement allowing either party to use the post office. The magistrate held that in such cases the person using the post office must take the risks of delays in delivery. The post office was his agent", not that of the other man, who had agreed to another channel of communication—the telegraph line. The letter came to Auckland in time but owing to no one being in plaintiffs' office when the postman called in the morning it was not delivered until after the despatch of the telegram, accepting defendant's offer, in the day. The magistrate held that the withdrawal was too late. On the question raised by the defence as to whether the agent could sue on a promissory note given to him as a deposit for the purchase of another's property, the magistrate held that sufficient consideration had been given for the note. The plaintiffs were interested in it. There had been a binding contract for the sale of the property, and plaintiffs' commission was included in the amount represented by it. Had cash been paid the agents could resist a claim for its recovery by defendant, and could recover on this promissory note. Judgment was for amount claimed, with costs. Security for appeal was fixed at £20, plus amount of judgment, and costs.