LIU MAN BUN AND ANOTHER v. LI YEK LEUNG

LIU MAN BUN AND ANOTHER v. LI YEK LEUNG

The court found that by the time of the attempted completion the solicitor held the balance of the purchase monies as agent of the vendor pursuant to clauses 13–15, the purchasers had fully performed and were ready and willing to complete, the vendor refused to complete and thereby breached the contract; accordingly the purchasers were entitled to specific performance and the vendor's counterclaim was dismissed.

Citation
LIU MAN BUN AND ANOTHER v. LI YEK LEUNG
Parties
Purchaser (1st Plaintiff): Liu Man Bun; Purchaser (2nd Plaintiff): Liu Chan Ping Yi; Vendor (defendant): Li Yek Leung
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 October 1985
Case Number
HCA6936/1984
Procedural Posture
Sale of Residential Flat; Claim for Specific Performance and Counterclaim for Rescission/forfeiture / Judgment (trial)
Outcome
Judgment for plaintiffs (purchasers) for specific performance; counterclaim by vendor dismissed
Legal Topics
Specific Performance, Time Is of the Essence, Agency of Solicitor, Withholding of Purchase Monies, Breach of Contract, Damages, Possession
Source Language
EN
Contract Property Equity Agency Professional Conduct of Solicitors Specific Performance Time Is of the Essence Agency of Solicitor +4 more

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Parties

Liu Man Bun

Purchaser (1st Plaintiff)

Liu Chan Ping Yi

Purchaser (2nd Plaintiff)

Li Yek Leung

Vendor (defendant)

Procedural Posture

Sale of Residential Flat; Claim for Specific Performance and Counterclaim for Rescission/forfeiture / Judgment (trial)

Legal Issues

  1. 1 On whose behalf did the solicitor hold the purchase monies at completion?
  2. 2 Whether the purchasers were ready, willing and able to complete the contract
  3. 3 Whether the vendor repudiated the contract and was in breach entitling purchasers to specific performance

Ratio Decidendi

The court found that by the time of the attempted completion the solicitor held the balance of the purchase monies as agent of the vendor pursuant to clauses 13–15, the purchasers had fully performed and were ready and willing to complete, the vendor refused to complete and thereby breached the contract; accordingly the purchasers were entitled to specific performance and the vendor's counterclaim was dismissed.

Court Disposition

Judgment for plaintiffs (purchasers) for specific performance; counterclaim by vendor dismissed

Orders

  • Specific performance ordered: vendor Li Yek Leung to complete the sale of Flat D Jardine Court to purchasers Liu Man Bun and Liu Chan Ping Yi in accordance with the agreement.
  • Counterclaim by Li Yek Leung dismissed.