GREAT TREASURE INTERNATIONAL LTD. v. MIMASU (HK) CO. LTD.

GREAT TREASURE INTERNATIONAL LTD. v. MIMASU (HK) CO. LTD.

The Court held that the judge below was wrong to find a total failure of consideration on the evidence presented; there was no basis to treat the cheque as conditional such that summary judgment should be refused, and therefore judgment must be entered for the plaintiff for the amount of the cheque plus any accruing interest.

Citation
GREAT TREASURE INTERNATIONAL LTD. v. MIMASU (HK) CO. LTD.
Parties
Plaintiff/appellant: GREAT TREASURE INTERNATIONAL LIMITED; Defendant/respondent: MIMASU (HK) COMPANY LIMITED
Court
Court of Appeal
Jurisdiction
Hong Kong
Judgment Date
22 October 2002
Case Number
CACV222/2002
Procedural Posture
Civil Appeal (appeal From Summary Judgment) / Court of Appeal Determination on Appeal From DCCJ 16767/2001
Outcome
Appeal allowed; judgment entered for plaintiff for the amount of the cheque plus interest.
Legal Topics
Summary Judgment, Failure of Consideration, Cheque as Payment, Conditional Delivery, Defective Goods
Source Language
EN
Civil Procedure Contract Sale of Goods Commercial Law Summary Judgment Failure of Consideration Cheque as Payment Conditional Delivery +1 more

Case Brief

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Parties

GREAT TREASURE INTERNATIONAL LIMITED

Plaintiff/appellant

MIMASU (HK) COMPANY LIMITED

Defendant/respondent

Procedural Posture

Civil Appeal (appeal From Summary Judgment) / Court of Appeal Determination on Appeal From DCCJ 16767/2001

Legal Issues

  1. 1 Whether the defendant established a defence of total failure of consideration to an action on a cheque
  2. 2 Whether the cheque was delivered conditionally such that summary judgment should be refused
  3. 3 Whether the goods were so defective as to negate consideration or require set‑off or counterclaim

Ratio Decidendi

The Court held that the judge below was wrong to find a total failure of consideration on the evidence presented; there was no basis to treat the cheque as conditional such that summary judgment should be refused, and therefore judgment must be entered for the plaintiff for the amount of the cheque plus any accruing interest.

Court Disposition

Appeal allowed; judgment entered for plaintiff for the amount of the cheque plus interest.

Orders

  • Enter judgment for the plaintiff in the sum of $119,369 plus any interest which arises on it