Cases - Atkins v AD Kennedy & Co Ltd

Record details

Name

Atkins v AD Kennedy & Co Ltd

Date

[1921]

Citation

NZLR 977

Keywords

Estate agency

Summary

The plaintiff's contract of sale of the lease of a hotel had been rescinded on account of misrepresentations made by his agent about the hotel business. So he had had to pay back the purchaser's deposit plus damages. He sued the agent to recover these sums, but the agent claimed to be entitled to retain the deposit as his commission.

It was held that, as the misrepresentations fatal to the sale were not authorised by the plaintiff and were made negligently, the agents had not earned their commission. Furthermore, the plaintiff was entitled to recover his legal costs in respect of his preparations to complete the abortive contract.