CHEERUP LTD v. WONG SAD FONG

CHEERUP LTD v. WONG SAD FONG

Clause (2) was held to be clear and unambiguous in giving the vendor an option to resile on payment of twice the deposit and the agent's service charge; that option excluded the purchaser's right to seek specific performance and the defendant validly rescinded the provisional agreement.

Citation
CHEERUP LTD v. WONG SAD FONG
Parties
Purchaser: Cheerup Limited; Vendor: Wong Sad Fong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 November 1996
Case Number
HCA4461/1992
Procedural Posture
Contract Dispute Provisional Sale and Purchase Agreement (specific Performance) / Judgment (high Court)
Outcome
Plaintiff's claim dismissed; provisional agreement rescinded by vendor under clause (2)
Legal Topics
Specific Performance, Contract Interpretation, Provisional Agreement, Liquidated Damages, Cancellation/escape Clause
Source Language
EN
Contract Law Property Law Equitable Remedies Specific Performance Contract Interpretation Provisional Agreement Liquidated Damages Cancellation/escape Clause

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Parties

Cheerup Limited

Purchaser

Wong Sad Fong

Vendor

Procedural Posture

Contract Dispute Provisional Sale and Purchase Agreement (specific Performance) / Judgment (high Court)

Legal Issues

  1. 1 Proper construction of provisional agreement clause (2)
  2. 2 Whether clause (2) excluded purchaser's right to seek specific performance
  3. 3 Whether vendor validly rescinded under clause (2)

Ratio Decidendi

Clause (2) was held to be clear and unambiguous in giving the vendor an option to resile on payment of twice the deposit and the agent's service charge; that option excluded the purchaser's right to seek specific performance and the defendant validly rescinded the provisional agreement.

Court Disposition

Plaintiff's claim dismissed; provisional agreement rescinded by vendor under clause (2)

Orders

  • Dismissal of plaintiff's claim
  • Order nisi that defendant have the costs of the action