RELIANCE INDUSTRIAL CORPORATION v. STANDARD ELECTRIC WIRE AND CABLE MANUFACTURING COMPANY LIMITED

RELIANCE INDUSTRIAL CORPORATION v. STANDARD ELECTRIC WIRE AND CABLE MANUFACTURING COMPANY LIMITED

Clause 4 permits the seller either to resell for the buyer's account or to accept rescission and recover losses caused by the buyer's breach; the clause does not limit recovery to anything less than actual loss nor does it operate as a penalty; the defendant had no available defence and the Master's judgment was correct, so the appeal must be dismissed.

Citation
RELIANCE INDUSTRIAL CORPORATION v. STANDARD ELECTRIC WIRE AND CABLE MANUFACTURING COMPANY LIMITED
Parties
Plaintiff/respondent: Reliance Industrial Corporation Limited; Defendant/appellant: Standard Electric Wire and Cable Manufacturing Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 August 1984
Case Number
HCA3267/1984
Procedural Posture
Civil Appeal / Appeal From Master's Decision Under O.14 R.3
Outcome
Appeal dismissed
Legal Topics
Breach of Contract, Damages, Rescission, Contract Interpretation, Penalty Rule, Waiver, Costs
Source Language
EN
Contract Civil Procedure Commercial Law Breach of Contract Damages Rescission Contract Interpretation Penalty Rule +2 more

Case Brief

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Parties

Reliance Industrial Corporation Limited

Plaintiff/respondent

Standard Electric Wire and Cable Manufacturing Company Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Master's Decision Under O.14 R.3

Legal Issues

  1. 1 Whether defendant's failure to open letters of credit constituted breach
  2. 2 Whether granting additional time amounted to waiver of breach
  3. 3 Construction of clause 4 and whether it limits seller's recovery

Ratio Decidendi

Clause 4 permits the seller either to resell for the buyer's account or to accept rescission and recover losses caused by the buyer's breach; the clause does not limit recovery to anything less than actual loss nor does it operate as a penalty; the defendant had no available defence and the Master's judgment was correct, so the appeal must be dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs