KWAN LUNG WAI v. DELUXE STAR INVESTMENT LTD t/a GREAT TIME UNIVERSAL (HK)

KWAN LUNG WAI v. DELUXE STAR INVESTMENT LTD t/a GREAT TIME UNIVERSAL (HK)

Accepting the plaintiff’s pleaded facts as true for the default application, the judge found that the plaintiff’s consent was vitiated by undue influence and duress and that the contract’s terms and the sales conduct rendered the contract unconscionable under s5 UCO; accordingly the contract was rescinded and the plaintiff was entitled to a refund, interest and costs.

Citation
[2020] HKDC 540
Parties
Plaintiff: Plaintiff; Defendant: Defendant
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
29 June 2020
Case Number
DCCJ4613/2019
Procedural Posture
Rescission (unconscionable Contracts) Consumer Timeshare Dispute / Hearing for Default Judgment; Judgment Entered
Outcome
Judgment for plaintiff; contract rescinded; refund, interest and costs awarded
Legal Topics
Rescission, Unconscionability (uco), Timeshare Contract, Cooling Off Period, Misleading Sales Tactics, Interest and Costs
Source Language
EN
Contract Law Consumer Protection Equity (undue Influence and Duress) Civil Procedure Rescission Unconscionability (uco) Timeshare Contract Cooling Off Period +2 more

Case Brief

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Parties

Plaintiff

Plaintiff

Defendant

Defendant

Procedural Posture

Rescission (unconscionable Contracts) Consumer Timeshare Dispute / Hearing for Default Judgment; Judgment Entered

Legal Issues

  1. 1 Whether the timeshare contract is unconscionable within s5 of the Unconscionable Contracts Ordinance
  2. 2 Whether the plaintiff signed under undue influence and duress
  3. 3 Whether rescission and refund of the sum paid should be granted

Ratio Decidendi

Accepting the plaintiff’s pleaded facts as true for the default application, the judge found that the plaintiff’s consent was vitiated by undue influence and duress and that the contract’s terms and the sales conduct rendered the contract unconscionable under s5 UCO; accordingly the contract was rescinded and the plaintiff was entitled to a refund, interest and costs.

Court Disposition

Judgment for plaintiff; contract rescinded; refund, interest and costs awarded

Orders

  • Declaration that the Contract is rescinded/terminated
  • Judgment entered for the plaintiff against the defendant for refund of HK$3,000