ANANAS LTD AND ANOTHER v. TAK AH KNITWEARS & GRAMENT FACTORY LTD

ANANAS LTD AND ANOTHER v. TAK AH KNITWEARS & GRAMENT FACTORY LTD

Court held Triple Crown acted as agent for Ananas but for Purchase Order A049 the agency was undisclosed at formation so Triple Crown remained liable on that contract; by 30 August 1984 Ananas' identity was disclosed so Triple Crown was not liable for later invoices; many delivery delays were attributable to Ananas' late or defective supply of yarn and to agreed production deferrals so Ananas' claims for air freight largely failed; Tak Ah was liable for defects where court found it produced defective garments (notably part of A049) but Ananas failed to prove causation for several other defect claims; surplus yarn claim dismissed for lack of proof; net result: judgment for Tak Ah against...

Citation
ANANAS LTD AND ANOTHER v. TAK AH KNITWEARS & GRAMENT FACTORY LTD
Parties
Plaintiff (hca 7052)/defendant (hca 7833): Tak Ah Knitwears & Garment Factory Limited; Defendant (hca 7052): Triple Crown Limited; Plaintiff (hca 7833): Ananas Limited; Plaintiff (hca 7833): Shee Hing Trading Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 January 1988
Case Number
HCA7833/1985
Procedural Posture
Contract Sale of Goods (cmt Manufacturing Agreements) / High Court Judgment (trial Concluded; Judgment Delivered 18 Jan 1988)
Outcome
Part judgments entered: Tak Ah obtains judgment against Triple Crown for HKD 95,190 (Invoice B/294) and against Ananas for HKD 81,135 (Invoices B/297 and B/298); Ananas obtains judgment against Tak Ah for USD 37,625.28 (A049 compensation) and HKD 6,893.98 (loss on admitted defective pieces); surplus raw materials...
Legal Topics
CMT Contracts, Undisclosed Principal/agency, Delivery Delays and Damages, Defective Goods Liability, Return of Buyer's Raw Materials, Loss of Profits, Counterclaim and Set Off
Source Language
EN
Contract Agency Sale of Goods Commercial Law CMT Contracts Undisclosed Principal/agency Delivery Delays and Damages Defective Goods Liability +3 more

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Parties

Tak Ah Knitwears & Garment Factory Limited

Plaintiff (hca 7052)/defendant (hca 7833)

Triple Crown Limited

Defendant (hca 7052)

Ananas Limited

Plaintiff (hca 7833)

Shee Hing Trading Company Limited

Plaintiff (hca 7833)

Procedural Posture

Contract Sale of Goods (cmt Manufacturing Agreements) / High Court Judgment (trial Concluded; Judgment Delivered 18 Jan 1988)

Legal Issues

  1. 1 Whether Triple Crown contracted as agent for Ananas or Shee Hing and whether that agency was disclosed
  2. 2 Whether Tak Ah was liable for delayed delivery and related air freight and price reduction claims
  3. 3 Whether defects in finished garments were caused by Tak Ah's workmanship or by inferior yarn supplied by Ananas

Ratio Decidendi

Court held Triple Crown acted as agent for Ananas but for Purchase Order A049 the agency was undisclosed at formation so Triple Crown remained liable on that contract; by 30 August 1984 Ananas' identity was disclosed so Triple Crown was not liable for later invoices; many delivery delays were attributable to Ananas' late or defective supply of yarn and to agreed production deferrals so Ananas' claims for air freight largely failed; Tak Ah was liable for defects where court found it produced defective garments (notably part of A049) but Ananas failed to prove causation for several other defect claims; surplus yarn claim dismissed for lack of proof; net result: judgment for Tak Ah against...

Court Disposition

Part judgments entered: Tak Ah obtains judgment against Triple Crown for HKD 95,190 (Invoice B/294) and against Ananas for HKD 81,135 (Invoices B/297 and B/298); Ananas obtains judgment against Tak Ah for USD 37,625.28 (A049 compensation) and HKD 6,893.98 (loss on admitted defective pieces); surplus raw materials...

Orders

  • Judgment for Tak Ah against Triple Crown: HKD 95,190 (Invoice B/294)
  • Judgment for Tak Ah against Ananas: HKD 81,135 (Invoices B/297 and B/298)