LEE CHI HOI v. LAW YU KIN TRADING AS HO WAN ESTATE AGENCY

LEE CHI HOI v. LAW YU KIN TRADING AS HO WAN ESTATE AGENCY

The provisional agreement, construed according to its express terms, unambiguously made the purchaser liable to pay the 1% commission upon his default to complete the sale; therefore the appellant was contractually bound to pay the commission and the appeal is dismissed.

Citation
LEE CHI HOI v. LAW YU KIN TRADING AS HO WAN ESTATE AGENCY
Parties
Appellant/defendant: Lee Chi Hoi; Respondent/claimant: Law Yu Kin trading as Ho Wan Estate Agency
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 December 1988
Case Number
HCSA40/1988
Procedural Posture
Small Claims Tribunal Appeal to High Court / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Estate Agent Commission, Contract Interpretation, Forfeiture of Deposit, Entitlement to Remuneration Upon Non Completion
Source Language
EN
Agency Contract Property Civil Procedure Estate Agent Commission Contract Interpretation Forfeiture of Deposit Entitlement to Remuneration Upon Non Completion

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Parties

Lee Chi Hoi

Appellant/defendant

Law Yu Kin trading as Ho Wan Estate Agency

Respondent/claimant

Procedural Posture

Small Claims Tribunal Appeal to High Court / Judgment on Appeal

Legal Issues

  1. 1 Whether an estate agent is entitled to commission where the purchaser defaults and the sale does not complete
  2. 2 Proper construction of the provisional agreement and whether it unambiguously requires purchaser to pay commission on default
  3. 3 Whether a quantum meruit or implied term could entitle the agent to commission absent express provision

Ratio Decidendi

The provisional agreement, construed according to its express terms, unambiguously made the purchaser liable to pay the 1% commission upon his default to complete the sale; therefore the appellant was contractually bound to pay the commission and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs fixed at HKD 200.00