LEGAL INQUIRIES

New Zealand Herald, Volume LXXIII, Issue 22489, 5 August 1936, Page 7

LEGAL INQUIRIES

MANY PROBLEMS SOLVED Legal inquiries are answered in this column every Wednesday. Every care will bo taken to ensure that the legal guidance given is .sound and accurate, and as complete as possible on the l'acts supplied, but it is to be understood that no responsibility is undertaken for advice or information published in this column. Questions should be addressed to "Advocatus," care of the Kditor, Nkw Zi:ai,ani> Hkuai.d, Auckland, and must bear the inquirer's name and address as a guarantee of good faith. Initials or a pseudonym must also be given for purposes of reference in tho column. Mount Albert.—A mortgagee who takes possession of property is not allowed to leave (lie mi mo idle. ]te must make the best use of tlio same that he reasonably fan. This in ;ne case of city property would involve letfiiik: it. The above must be construed reasonably -the nature of the property ami the effect of letting on a sale, the length of time a mortgagee has been in possession, and other matters

would be taken into consideration. Anxious.—The owner of unfenced land can recover nothing by way of damages for (ho trespass of cattle, except certain fees allowed by The Impounding Act. "linfeneed land" means "land not enclosed with '} sufficient, fence within the meaning of I lie. rein ing Act," aim would include a fence in a state of disrepair. If. however, the bull broke through a sufficient fence, you would be entitled to recover all damages which followed as a reasonable consequence, which would include thoso resulting from the untimely putting in calf of your cows. The Impounding Act provides that in the case of a iresiass of an entire animal (which, of course, includes a bull) on fenced land, the owner thereof may recover in a summary way in addition to (lie trespass rates provided by that Act, a sum not exceeding £lO. Noxious Weeds.—lt is the duty of an occupier to keep his land clear of noxious weeds. It is tho duty of a local authority to keep clear land under its control. Where, however, the land has passed out of its control, that is to say, is let to a tenant, it becomes the duty of the tenant to keep the land free from noxious weeds. It is the duty of the owner of land having a road frontage to clear half the width of the road. Your procedure is to inform tho local Inspector of Noxious Weeds. If he fails in his duly, you would have a right of action against him or tho authority which employs him. Scripto.—lf you employ a painter in the course of your own trade or business, you will he liable under the Workers' Compensation Act for any accident that happens to him. Jf he is an independent contractor you will not he liable. (.'!) If (lie rental value of the house is less than iir>(i per annum Ihe Fair Rents Act. applies, and you cannot raise the rent above that paid on .May 1, 1030, without an order by a magistrate. Legatee.—Legatees or beneficiaries are under no obligation to accept a legacy or other property left to them if ii involves a liability which they are unwilling to under take. Puzzled.—Tho way to safeguard yourself is to take out a patent for ar improvement to the article. This you can do even though the article is a patent itself. You should consult a patent attorney. B.li. —Since £1 for every £'lo over £.50 in value of tho property owned by an applicant for the Ol.t-age Pension is deducted from tho pension, it is clear that the applicant in tho case you quote would not be entitled to receive any pension. Rotorua.—lf you are afraid that your beneficiaries are likely to squander the capital, leavo your j roperty to trustees with power to invest tlie same and pay tho interest therefrom to the beneficiaries during their lives. A useful provision is to empower the trustees to make advances out of capital at their discretion for the advancement or benefit of tho beneficiaries, i'ou can do tho above either by jour will or by a'Deed of Settlement. Noel.—lf .13 is actually a contractor and not an employee of A, Wages Tax has nothing to do with A at all. I! will not bo liable for the Wages Tax on tho contract price. He ■nil), of course, he liable for tho charge on any profit he makes out of the transaction, and it will also be his duty to see that Wages Tax is deducted from any wages that he actually pays to his men. Freehold.—The Pensions Department takes into consideration the property and income of an applicant. A deduction of £1 for every £lO of property in excess of the valuo of £SO and £' I for every £1 of income in excess of £'s'J per annum is made. Where a property produces income a deduction is made either for income or valuo, whichever results in the greater deduction. Where the applicant is married, no pension will btf granted which will increase the income of both (including tho pension) over £1.13 per annum. If you are both entitled to a pension thero would bo a deduction of approximately £75 in your case leaving a pension payable of £l6 per annum. M.S.—Males over 65—females over 60—are exempt from the Employment Charge on income other than salary or wages provided their total income from all sources (including wages) does not exceed £lO4 per annum. It is to be noted that they still remain liable for the tax on wages or salary. Provision is made for exemption from wages tax and also tho levy if the Commissioner of Taxes is satisfied that the circumstances of tho case warrant it. You can give a portion of your income-bearing property to your wife, and thereby effect a re-adjustment of your incomo and a saving with regard to the tax. . There is a general exemption of £SO in favour of women from the tax in respect of income other than salary or wages. Widow.—lt appears clear that you and your daughter have assumed liability for the amount of the mortgage originally arranged by your lato husband. You arc thoreforo not entitled to hand over the mortgaged property and be released from any personal liability. The mortgagee would have tho option of claiming tho money from you, and, if necessary, obtaining judgment for the same and issuing execution against your assets, or selling the property, and, in tho event of there boing a deficit, suing you for tho balance. Your best course is to come to an arrange, mcnt with the mortgagee, if you can, to tako the property back and release .vou from further liability. Patent. —A patent, protects the patentee only if ho is tho truo and first inventor. It is prima facie evidence that he is the true and first inventor. It can be revoked, however, upon it being proved that some othor person was tho true and first inventor. G.l''.—Once a summons is issued, even though not served, tho defendant debtor becomes liable for Court costs and tho costs of entering the plaint, which vary according to the amount claimed. Sunny.—A wife cannot prevent her husband raising a loan on his own property, no matter for what purpose. She, of course, is entitled to be adequately maintained, as also are tlio children. The living conditions and circumstances may bo such that 6ho is entitled to leave her husband, and live apart from him, but it. is doubtful whether they go to that extent in tho caso you quote. Paewcra. —Before the road through your property can bo coinmenpfed the land must be taken by tlio council under the Public Works Act. Under that Act you are entitled to claim compensation. If the council allege that you have agreed to mako no claim they must, allcgo the whole agreement whereby thoy agree to provido tho wire for the fencing. Rate.—lf the relation of master and servant exists between you and your daughter she will ho classified as an employee. You could take her into partnership, in which i*asc sho would ceaso to bo an employee. Tho advantages of forming a business into a private company, or a public company for that matter, depend a good deal on tho nature of tlio business and tho interests involved. The first and most obvious advantage is, that it gets rid of all personal liability for debts or other responsibilities, except in so far ns the assets of tlio company aro concerned. The second advantage is that a company consists of shareholders who may sell and subdivido their holdings in any way they please, subject to tlio Articles of Association. It can also invite subscription of capital more readily than an individual or a partnership. It is a special legal entity subject to special rules. A company may be in a better position as regards taxation than an individual. On tho other hand it may bo in a worse position. For example, income tax is payable at tho full rate on tho not profits of the company, but on tho other hand j tho net profits are only arrived at after ; payment to all the servants of tho com- j pany, including directors, of the amount they earn. A company is a useful form of combining the interests of a number of people, some of whom are actively engaged in tlio business, and some of whom aro not. It has an advantage over a partnership in that individual partners aro personally responsible for the partnership debts. Certain disadvantages aro the costs of formation, and the various rules and regulations which must, be complied with, but it is, of course, obvious that any business must have rules and regulations whether a partnership, or whether owned by an individual, or whether a company.. Tho greatest disadvantage of a company is tho fact that, persons investing their money in it may havo very little control over tho operations of tho company unless they aro directors, and even then they may bo governed by a majority. It is difficult to deal with (lie matter more fully as a long and somewhat technical explanation would be involved. If you aro thinking of turning your business into a company, your best course is to discuss tho matter thoroughly with your solicitor.