HOP CHUNG SCAFFOLDING CO LTD v. KING FUNG CONSTRUCTION WORK CO LTD

HOP CHUNG SCAFFOLDING CO LTD v. KING FUNG CONSTRUCTION WORK CO LTD

The court found the two Confirmation of Orders constituted binding contracts between the Plaintiff and the Defendant, that Yip had authority and the Defendant did not notify the Plaintiff of any novation or arrangement shifting liability to Sing Yip; accordingly the Defendant was liable to pay the outstanding sum of HK$941,296.80 with interest and costs.

Citation
HOP CHUNG SCAFFOLDING CO LTD v. KING FUNG CONSTRUCTION WORK CO LTD
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
20 December 2006
Case Number
DCCJ1855/2004
Procedural Posture
Contract / Judgment (trial)
Outcome
Judgment for Plaintiff
Legal Topics
Contract Formation, Agency and Authority, Novation, Subcontractor Liability, Damages, Costs, Interest
Source Language
EN
Contract Law Commercial Law Civil Procedure Evidence Agency Law Contract Formation Agency and Authority Novation +4 more

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Procedural Posture

Contract / Judgment (trial)

Legal Issues

  1. 1 Whether the Defendant was a contracting party to the rental agreements
  2. 2 Whether Sing Yip was the sub-sub-contractor and therefore liable for payment
  3. 3 Whether there was a novation or agreement shifting liability from the Defendant to Sing Yip

Ratio Decidendi

The court found the two Confirmation of Orders constituted binding contracts between the Plaintiff and the Defendant, that Yip had authority and the Defendant did not notify the Plaintiff of any novation or arrangement shifting liability to Sing Yip; accordingly the Defendant was liable to pay the outstanding sum of HK$941,296.80 with interest and costs.

Court Disposition

Judgment for Plaintiff

Orders

  • Judgment entered against the Defendant for HK$941,296.80 together with interest thereon at judgment rate from date of writ until payment
  • Costs of this action, including all costs reserved, to the Plaintiff to be taxed if not agreed; order nisi to become absolute after 14 days from date of judgment