PACIFIC CO LTD v. GREAT SUPREME LTD

PACIFIC CO LTD v. GREAT SUPREME LTD

The court found on objective reading of the correspondence that Pacific unilaterally altered the agreed payment terms and thereby repudiated the agreement; Great Supreme elected to await performance and when Pacific failed to deliver by the due date Pacific was in breach. Consequently Great Supreme was entitled to damages for its proven lost profits in the sum of HK$113,040 plus interest and costs.

Citation
PACIFIC CO LTD v. GREAT SUPREME LTD
Parties
Plaintiff: Pacific Co Ltd; Defendant: Great Supreme Limited
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
10 May 2012
Case Number
DCCJ4424/2010
Procedural Posture
Contract Sale of Goods / Judgment at Trial
Outcome
Plaintiff's claim dismissed; judgment entered for defendant on counterclaim
Legal Topics
Repudiation, Breach of Contract, Mitigation, Quantification of Damages, Counterclaim, Costs and Interest
Source Language
EN
Contract Sale of Goods Damages Civil Procedure Repudiation Breach of Contract Mitigation Quantification of Damages +2 more

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Parties

Pacific Co Ltd

Plaintiff

Great Supreme Limited

Defendant

Procedural Posture

Contract Sale of Goods / Judgment at Trial

Legal Issues

  1. 1 Whether defendant repudiated the agreement by email dated 16 August 2010
  2. 2 Whether plaintiff repudiated the agreement by unilaterally altering payment terms
  3. 3 Which party was in breach following the communications and conduct

Ratio Decidendi

The court found on objective reading of the correspondence that Pacific unilaterally altered the agreed payment terms and thereby repudiated the agreement; Great Supreme elected to await performance and when Pacific failed to deliver by the due date Pacific was in breach. Consequently Great Supreme was entitled to damages for its proven lost profits in the sum of HK$113,040 plus interest and costs.

Court Disposition

Plaintiff's claim dismissed; judgment entered for defendant on counterclaim

Orders

  • Judgment for Great Supreme Limited on its counterclaim in the sum of HK$113,040
  • Interest on HK$113,040 at 1% above HSBC best lending rate from the date of writ until 10 May 2012 and thereafter at the judgment rate until full payment