HANSUN INVESTMENT LTD v. SINCERE UNION DEVELOPMENT LTD AND ANOTHER

HANSUN INVESTMENT LTD v. SINCERE UNION DEVELOPMENT LTD AND ANOTHER

The court held that Sincere Union's correspondence demanding return of deposits and its prolonged inactivity constituted a clear and unequivocal acceptance of Asia Champion's repudiation, thereby terminating the provisional agreement; as a result specific performance was no longer available and the registered provisional agreement could be vacated upon Hansun providing adequate security; the counterclaim against Hansun was struck out.

Citation
HANSUN INVESTMENT LTD v. SINCERE UNION DEVELOPMENT LTD AND ANOTHER
Parties
Plaintiff; 1st Defendant (counterclaim): HANSUN INVESTMENT LIMITED; 1st Defendant; Counterclaim Plaintiff: SINCERE UNION DEVELOPMENT LIMITED; 2nd Defendant: ASIA CHAMPION TRADING LIMITED; 3rd Defendant (in Counterclaim): EXTRA POWER LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 May 2008
Case Number
HCMP351/2007
Procedural Posture
Miscellaneous Proceedings (land/property) Under Land Registration Ordinance / Preliminary Determination of Question of Law / Preliminary Issue (o.14 a R.1; O.33 Rs.3 4)
Outcome
Application allowed in part: the provisional agreement was declared terminated; Sincere Union barred from seeking specific performance; registration to be vacated upon Hansun providing adequate security; counterclaim against Hansun struck out; Sincere Union's application to dismiss Hansun's application dismissed.
Legal Topics
Specific Performance, Termination of Contract, Purchaser's Lien, Registration and Vacation of Provisional Agreement, Priority of Interests on Title
Source Language
EN
Property Law Contract Law Equity and Equitable Remedies Land Registration Specific Performance Termination of Contract Purchaser's Lien Registration and Vacation of Provisional Agreement +1 more

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Parties

HANSUN INVESTMENT LIMITED

Plaintiff; 1st Defendant (counterclaim)

SINCERE UNION DEVELOPMENT LIMITED

1st Defendant; Counterclaim Plaintiff

ASIA CHAMPION TRADING LIMITED

2nd Defendant

EXTRA POWER LIMITED

3rd Defendant (in Counterclaim)

Procedural Posture

Miscellaneous Proceedings (land/property) Under Land Registration Ordinance / Preliminary Determination of Question of Law / Preliminary Issue (o.14 a R.1; O.33 Rs.3 4)

Legal Issues

  1. 1 Whether the provisional agreement between Asia Champion and Sincere Union was terminated
  2. 2 Whether Sincere Union is barred from enforcing the provisional agreement by specific performance
  3. 3 Whether the purchaser's lien and registration protect Sincere Union once specific performance is no longer available

Ratio Decidendi

The court held that Sincere Union's correspondence demanding return of deposits and its prolonged inactivity constituted a clear and unequivocal acceptance of Asia Champion's repudiation, thereby terminating the provisional agreement; as a result specific performance was no longer available and the registered provisional agreement could be vacated upon Hansun providing adequate security; the counterclaim against Hansun was struck out.

Court Disposition

Application allowed in part: the provisional agreement was declared terminated; Sincere Union barred from seeking specific performance; registration to be vacated upon Hansun providing adequate security; counterclaim against Hansun struck out; Sincere Union's application to dismiss Hansun's application dismissed.

Orders

  • Questions 1(i) and 1(ii) answered in the affirmative pursuant to O.14A r.1 RHC
  • Declarations that the provisional agreement has been terminated and that Sincere Union is not entitled to specific performance