YAU v CHEUNG [1999] NSWCA 56

YAU v CHEUNG [1999] NSWCA 56

The written agreement executed on 7 November 1994 was not intended to, and did not, embody the whole agreement between the parties. The appellant became personally liable through an earlier oral agreement to repay $300,000 to the respondent. Clause 3 of the written agreement provided further evidence supporting the existence of the oral guarantee. The appeal was dismissed as the lower court was correct in finding personal liability against the appellant.

Parties
Appellant: Andy Sung Kit Yau; Respondent: Wing Cheung
Jurisdiction
Australia
Judgment Date
25 March 1999
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Interpretation of Contracts, Parol Evidence Rule, Guarantees, Written and Oral Agreements
Contract Law Interpretation of Contracts Parol Evidence Rule Guarantees Written and Oral Agreements

Case Brief

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Parties

Andy Sung Kit Yau

Appellant

Wing Cheung

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the written agreement constituted the whole agreement between the parties
  2. 2 Whether the appellant guaranteed repayment of the $300,000 loan to the respondent
  3. 3 Whether the oral agreement created a personal liability on the appellant

Ratio Decidendi

The written agreement executed on 7 November 1994 was not intended to, and did not, embody the whole agreement between the parties. The appellant became personally liable through an earlier oral agreement to repay $300,000 to the respondent. Clause 3 of the written agreement provided further evidence supporting the existence of the oral guarantee. The appeal was dismissed as the lower court was correct in finding personal liability against the appellant.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs