CHAN YIU KIT AND ANOTHER v. HOMEAST DEVELOPMENT LTD.

CHAN YIU KIT AND ANOTHER v. HOMEAST DEVELOPMENT LTD.

The written mistake describing the lot was corrected to Lot No. 600A to reflect the parties' common intention; Clause 18's timelines were estimates but required commencement and completion within a reasonable time; no condition precedent of obtaining a building licence was proved or written into the agreement; by failing to obtain the licence and commence works within reasonable time the vendor put performance beyond its means and breached the contract; accordingly the purchasers validly rescinded and were entitled to return of deposit and to liquidated damages and stamp duty under the provisional sale and purchase agreement; the defendant could not forfeit the deposit nor recover the...

Citation
CHAN YIU KIT AND ANOTHER v. HOMEAST DEVELOPMENT LTD.
Parties
Plaintiffs: Chan Yiu Kit and Lam Wai Ping; Defendant: Homeast Development Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 June 2000
Case Number
HCA12520/1998
Procedural Posture
Contract for Sale of Land / Property Development / Judgment (court of First Instance)
Outcome
Judgment for the plaintiffs
Legal Topics
Misdescription, Mutual Mistake, Condition Precedent, Time for Completion, Rescission, Breach of Contract, Liquidated Damages, Deposit Forfeiture, Building Licence
Source Language
EN
Contract Law Property Law Civil Procedure Misdescription Mutual Mistake Condition Precedent Time for Completion Rescission +4 more

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Parties

Chan Yiu Kit and Lam Wai Ping

Plaintiffs

Homeast Development Limited

Defendant

Procedural Posture

Contract for Sale of Land / Property Development / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the written description misdescribed the subject property or whether there was a common/mutual mistake
  2. 2 Whether the misdescription affected existence/identity of the subject matter
  3. 3 Whether Clause 18 made time of the essence or required performance within a fixed time or only reasonable time

Ratio Decidendi

The written mistake describing the lot was corrected to Lot No. 600A to reflect the parties' common intention; Clause 18's timelines were estimates but required commencement and completion within a reasonable time; no condition precedent of obtaining a building licence was proved or written into the agreement; by failing to obtain the licence and commence works within reasonable time the vendor put performance beyond its means and breached the contract; accordingly the purchasers validly rescinded and were entitled to return of deposit and to liquidated damages and stamp duty under the provisional sale and purchase agreement; the defendant could not forfeit the deposit nor recover the...

Court Disposition

Judgment for the plaintiffs

Orders

  • Enter judgment for the plaintiffs against the defendant in the sum of HK$955,000.00 (HK$425,000.00 + HK$425,000.00 + HK$105,000.00) with interest at half judgment rate from date of filing of the writ until judgment and thereafter at judgment rate until payment.
  • Dismiss the defendant's counterclaim.