CHAN HO ENGINEERING PTE LTD v. WONG WING KWONG AND ANOTHER

CHAN HO ENGINEERING PTE LTD v. WONG WING KWONG AND ANOTHER

Court found there was a binding agreement between Chan and Wong reached orally and recorded in a poorly drafted written note; the misnaming of parties was cured by evidence and partial performance (transfer of shares on 31 August 2000); accordingly the written agreement was rectified to reflect the parties' intention and 1st Defendant ordered to pay HK$480,000; defendants' counterclaims failed for lack of credible evidence and the guarantee did not bind the Plaintiff.

Citation
CHAN HO ENGINEERING PTE LTD v. WONG WING KWONG AND ANOTHER
Parties
Plaintiff: CHAN HO ENGINEERING PTE LTD; 1st Defendant: WONG WING KWONG; 2nd Defendant: WING LI PRECISION METAL WORK COMPANY LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
17 May 2004
Case Number
DCCJ13115/2001
Procedural Posture
Civil Action District Court / Judgment Delivered
Outcome
Judgment for Plaintiff against 1st Defendant; judgment against 2nd Defendant in part; defendants' counterclaims dismissed.
Legal Topics
Rectification of Agreement, Share Transfer, Guarantee, Counterclaim, Partial Performance, Sale of Goods
Source Language
EN
Contract Company Law Equity Rectification of Agreement Share Transfer Guarantee Counterclaim Partial Performance +1 more

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Parties

CHAN HO ENGINEERING PTE LTD

Plaintiff

WONG WING KWONG

1st Defendant

WING LI PRECISION METAL WORK COMPANY LIMITED

2nd Defendant

Procedural Posture

Civil Action District Court / Judgment Delivered

Legal Issues

  1. 1 Whether the written agreement should be rectified to reflect the parties' true agreement
  2. 2 Whether the 1st Defendant was personally liable to pay $480,000 to the Plaintiff
  3. 3 Whether the Plaintiff remained liable for the 2nd Defendant's debts after 1 September 2000

Ratio Decidendi

Court found there was a binding agreement between Chan and Wong reached orally and recorded in a poorly drafted written note; the misnaming of parties was cured by evidence and partial performance (transfer of shares on 31 August 2000); accordingly the written agreement was rectified to reflect the parties' intention and 1st Defendant ordered to pay HK$480,000; defendants' counterclaims failed for lack of credible evidence and the guarantee did not bind the Plaintiff.

Court Disposition

Judgment for Plaintiff against 1st Defendant; judgment against 2nd Defendant in part; defendants' counterclaims dismissed.

Orders

  • Agreement rectified to reflect the parties' intention recorded in August 2000
  • Judgment against 1st Defendant for HK$480,000 with interest at judgment rate from date of writ to date of judgment and thereafter at judgment rate