GREAT POWER INVESTMENT LTD v. CHAN YIU KAI AND ANOTHER

GREAT POWER INVESTMENT LTD v. CHAN YIU KAI AND ANOTHER

The court found Mrs Chan made a false representation to the agent before the agreements were signed and knew it to be false; that representation was communicated to and relied upon by Great Power; Mrs Chan acted within scope of authority such that Mr Chan is also liable; the agreements were induced by fraudulent misrepresentation and hence rescinded and the deposit repayable with interest; costs awarded to plaintiff.

Citation
GREAT POWER INVESTMENT LTD v. CHAN YIU KAI AND ANOTHER
Parties
Plaintiff: Great Power; 1st Defendant: Mr. Chan; 2nd Defendant: Mrs. Chan
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
6 March 2009
Case Number
DCCJ3773/2007
Procedural Posture
Rescission and Damages for Fraudulent Misrepresentation / Trial Judgment
Outcome
Provisional and formal sale agreements rescinded; Counterclaim dismissed; plaintiff awarded repayment of deposit and costs.
Legal Topics
Misrepresentation, Fraudulent Misrepresentation, Rescission, Deposit Recovery, Damages, Agency Authority, Evidence and Credibility
Source Language
EN
Contract Tort Property Civil Procedure Agency Misrepresentation Fraudulent Misrepresentation Rescission +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Great Power

Plaintiff

Mr. Chan

1st Defendant

Mrs. Chan

2nd Defendant

Procedural Posture

Rescission and Damages for Fraudulent Misrepresentation / Trial Judgment

Legal Issues

  1. 1 What representation (if any) was made by defendants to the agent and when
  2. 2 Whether the agent repeated the representation to the purchaser
  3. 3 Whether the representation was untrue

Ratio Decidendi

The court found Mrs Chan made a false representation to the agent before the agreements were signed and knew it to be false; that representation was communicated to and relied upon by Great Power; Mrs Chan acted within scope of authority such that Mr Chan is also liable; the agreements were induced by fraudulent misrepresentation and hence rescinded and the deposit repayable with interest; costs awarded to plaintiff.

Court Disposition

Provisional and formal sale agreements rescinded; Counterclaim dismissed; plaintiff awarded repayment of deposit and costs.

Orders

  • Rescind the provisional and formal sale and purchase agreements for Unit No.7, 9th Floor, Po Hong Centre
  • Mr. and Mrs. Chan to repay Great Power the deposit of 90500 with interest at judgment rate from date of service of the Writ to date of payment