CHAN YEUK YU AND ANOTHER v. CHURCH BODY OF THE HONG KONG SHENG KUNG HUI AND ANOTHER

CHAN YEUK YU AND ANOTHER v. CHURCH BODY OF THE HONG KONG SHENG KUNG HUI AND ANOTHER

The plaintiffs failed to prove actionable misrepresentation, the spiral staircase was not shown to render the flat unfit for residential use and was constructed in accordance with approved plans and permits, clause 28(1) does not extend to design defects in the circumstances, and the implied terms plaintiffs sought to import were inconsistent with the express contractual terms; accordingly rescission was not available and the plaintiffs' claims were dismissed.

Citation
CHAN YEUK YU AND ANOTHER v. CHURCH BODY OF THE HONG KONG SHENG KUNG HUI AND ANOTHER
Parties
1st Plaintiff: CHAN YEUK YU; 2nd Plaintiff: CHIK WEN FEI; 1st Defendant: CHURCH BODY OF THE HONG KONG SHENG KUNG HUI; 2nd Defendant: HONG KONG SHENG KUNG HUI FOUNDATION
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
19 February 2001
Case Number
HCCT83/1999
Procedural Posture
Construction and Arbitration Proceedings; Civil Contract Dispute (sale of Property) / Judgment (court of First Instance)
Outcome
Plaintiffs' claims dismissed; judgment for defendants
Legal Topics
Rescission, Misrepresentation, Breach of Contractual Clause (clause 28(1)), Implied Terms, Building Standards Vs Statutory Approval, Fitness for Residential Use
Source Language
EN
Contract Law Property Law Construction Law Tort (misrepresentation) Rescission Misrepresentation Breach of Contractual Clause (clause 28(1)) Implied Terms +2 more

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Parties

CHAN YEUK YU

1st Plaintiff

CHIK WEN FEI

2nd Plaintiff

CHURCH BODY OF THE HONG KONG SHENG KUNG HUI

1st Defendant

HONG KONG SHENG KUNG HUI FOUNDATION

2nd Defendant

Procedural Posture

Construction and Arbitration Proceedings; Civil Contract Dispute (sale of Property) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether promotional statements in brochure amounted to actionable misrepresentation inducing purchase
  2. 2 Whether clause 28(1) of the agreement required vendor to remedy design defects such as the spiral staircase
  3. 3 Whether terms that the property would be designed with reasonable skill and fit for residential use could be implied into the express contract and whether any implied term was breached

Ratio Decidendi

The plaintiffs failed to prove actionable misrepresentation, the spiral staircase was not shown to render the flat unfit for residential use and was constructed in accordance with approved plans and permits, clause 28(1) does not extend to design defects in the circumstances, and the implied terms plaintiffs sought to import were inconsistent with the express contractual terms; accordingly rescission was not available and the plaintiffs' claims were dismissed.

Court Disposition

Plaintiffs' claims dismissed; judgment for defendants

Orders

  • Claim for rescission dismissed
  • Plaintiffs to pay defendants' costs