WONG FUK WAH GEORGE AND ANOTHER v. CHU FUNG CHEE GEORGE AND ANOTHER

WONG FUK WAH GEORGE AND ANOTHER v. CHU FUNG CHEE GEORGE AND ANOTHER

The judge found that Mr Chu made untrue representations which induced Mr Wong and Showyield to enter into the First and Second Agreements; rescission was available because status quo ante could be restored; Mr Chu contracted personally (not merely as agent for Watcom); damages were awarded to Showyield for losses caused by the misrepresentations and repayments ordered to plaintiffs for purchase monies.

Citation
WONG FUK WAH GEORGE AND ANOTHER v. CHU FUNG CHEE GEORGE AND ANOTHER
Parties
1st Plaintiff: WONG FUK WAH, GEORGE; 2nd Plaintiff: SHOWYIELD LIMITED; 1st Defendant: CHU FUNG CHEE, GEORGE; 2nd Defendant: WATCOM SYSTEM SERVICES LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 March 1996
Case Number
HCA3181/1992
Procedural Posture
Civil: Misrepresentation and Rescission (share Purchase / Contract) / Judgment (trial)
Outcome
Judgment for the Plaintiffs: rescission granted; Counterclaim dismissed
Legal Topics
Misrepresentation, Rescission, Damages, Agency, Share Transfer
Source Language
EN
Contract Tort Equity Company Law Misrepresentation Rescission Damages Agency +1 more

Case Brief

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Parties

WONG FUK WAH, GEORGE

1st Plaintiff

SHOWYIELD LIMITED

2nd Plaintiff

CHU FUNG CHEE, GEORGE

1st Defendant

WATCOM SYSTEM SERVICES LIMITED

2nd Defendant

Procedural Posture

Civil: Misrepresentation and Rescission (share Purchase / Contract) / Judgment (trial)

Legal Issues

  1. 1 Whether the defendant made false representations inducing the plaintiffs to enter into two agreements
  2. 2 Whether the defendant acted as agent for Watcom or as contracting party personally
  3. 3 Whether rescission was available and whether status quo ante could be restored

Ratio Decidendi

The judge found that Mr Chu made untrue representations which induced Mr Wong and Showyield to enter into the First and Second Agreements; rescission was available because status quo ante could be restored; Mr Chu contracted personally (not merely as agent for Watcom); damages were awarded to Showyield for losses caused by the misrepresentations and repayments ordered to plaintiffs for purchase monies.

Court Disposition

Judgment for the Plaintiffs: rescission granted; Counterclaim dismissed

Orders

  • Rescission of the First and Second Agreements
  • The 1st Defendant to repay $650,000 to the 1st Plaintiff