SALE OF FLAX BONDS

New Zealand Times, Volume LIII, Issue 12527, 17 August 1926, Page 11

SALE OF FLAX BONDS

BREACH OF AGREEMENT AGENTS’ TERMS TO BE CARRIED OUT. Per Press Association. AUCKLAND, August 16. Mr Justice Stringer delivered judgment in an action brought by Flax Lands Development, Ltd., against Herbert S. Joll. to restrain the defendant from interesting himself in the sale of flax or afforestation bonds other than the plaintiffs. By written agreement Job and one Murch were appointed sole agents for the sale of flax bopds within a specified area for six months. One of the terms was that the agents would not interest themselves in the sale of securities of any "other company. It was not disputed that the | defendant, contrary to this stipulation, had accepted employment by the Afforestation Company, and sold its bonds. His Honour said the defences raised were that the agreement was not binding, because it was signed by the defendant when drunk, that the court should leave the plaintiffs to the common law remedy, and the restriction was void as being an unreasonable restraint of trade. The defendant had failed to establish the first defence. While he could not compel the defendant to do what lie ought in performance of "contract, His Honour thought it just and proper that Joll should he restrained from doing what he had expressly agreed not to do, and ordered that during the remainder of curdeney of the agreement, Joll bo restrained from interesting himself in the sale of any fiax or afforestation securities other than the plaintiffs.’