WORLDPART INDUSTRIAL LTD v. TSO HO SAN

WORLDPART INDUSTRIAL LTD v. TSO HO SAN

The contractual references to an "occupation permit" were to the government document that permits lawful occupation; where the development was exempt under the Small House Policy the Certificate of Compliance satisfies that contractual reference, so issue of Certificates of Compliance for Blocks C and U fulfilled clause 9 and did not constitute wrongful repudiation by Worldpart; accordingly purchasers' claims fail and Worldpart's claims/counterclaims for breach succeed.

Citation
WORLDPART INDUSTRIAL LTD v. TSO HO SAN
Parties
Plaintiff (hca9351/1999); Defendant (hca9671/1999,hca1192/1999): Worldpart Industrial Limited; Plaintiff (hca1192/1999): Chu Chow Ha Josephine; Defendant (hca9351/1999); Plaintiff (hca9671/1999): Tso Ho San
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 March 2005
Case Number
HCA9671/1999
Procedural Posture
Civil Breach of Contract for Sale and Purchase of Property (consolidated Actions) / Final Judgment at Trial
Outcome
Purchasers' claims dismissed; judgment for Worldpart on counterclaim against Chu; judgment for Worldpart against Tso; Tso's counterclaim dismissed
Legal Topics
Contract Interpretation, Condition Precedent, Repudiation, Damages and Mitigation, Building Regulation Exemptions, Title and Good Title, Costs
Source Language
EN
Contract Law Property Law Administrative/statutory Law Civil Procedure Contract Interpretation Condition Precedent Repudiation Damages and Mitigation +3 more

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Parties

Worldpart Industrial Limited

Plaintiff (hca9351/1999); Defendant (hca9671/1999,hca1192/1999)

Chu Chow Ha Josephine

Plaintiff (hca1192/1999)

Tso Ho San

Defendant (hca9351/1999); Plaintiff (hca9671/1999)

Procedural Posture

Civil Breach of Contract for Sale and Purchase of Property (consolidated Actions) / Final Judgment at Trial

Legal Issues

  1. 1 Whether the Chinese phrase in the contracts should be translated and construed as "occupation permit" or as "certificate of compliance"," and whether issuance of an occupation permit was a condition precedent to payment of the third 10%
  2. 2 Whether issuance of a Certificate of Compliance under the Small House Policy satisfied the contractual reference to an occupation permit
  3. 3 Whether breach of conditions 4(a) and 4(d) of the Building Licence rendered the sale void or contrary to public policy

Ratio Decidendi

The contractual references to an "occupation permit" were to the government document that permits lawful occupation; where the development was exempt under the Small House Policy the Certificate of Compliance satisfies that contractual reference, so issue of Certificates of Compliance for Blocks C and U fulfilled clause 9 and did not constitute wrongful repudiation by Worldpart; accordingly purchasers' claims fail and Worldpart's claims/counterclaims for breach succeed.

Court Disposition

Purchasers' claims dismissed; judgment for Worldpart on counterclaim against Chu; judgment for Worldpart against Tso; Tso's counterclaim dismissed

Orders

  • HCA1192/1999: Plaintiff Chu's claim dismissed; judgment for Worldpart on its counterclaim against Chu in the sum of $401,857.16 HKD with interest at 1% above prime from the date of the counterclaim.
  • HCA9351/1999: Judgment for Worldpart against Tso in the sum of $1,532,120.40 HKD with interest at 1% above prime from the date of the writ.