CHAN ALEX AND ANOTHER v. TAKE CARE LOGISTICS LTD

CHAN ALEX AND ANOTHER v. TAKE CARE LOGISTICS LTD

On the balance of probabilities the PTA was between the plaintiffs and Wong only; the defendant was not a party to the PTA and could not take its benefits; the defendant, by indicating on 3 January 2013 that it would not proceed, repudiated the T/A and the plaintiffs validly accepted that repudiation; the defendant...

Source-derived case information.

Citation
CHAN ALEX AND ANOTHER v. TAKE CARE LOGISTICS LTD
Parties
Plaintiffs: CHAN ALEX and CHAN ARRON; Defendant: TAKE CARE LOGISTICS LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
5 June 2017
Case Number
DCCJ5024/2013
Procedural Posture
Landlord and Tenant Dispute (tenancy Agreement Breach) / Judgment (district Court)
Outcome
Judgment partly for plaintiffs and partly for defendant: plaintiffs awarded damages; defendant awarded repayment after set‑off; costs to plaintiffs at 50% on a party‑to‑party basis (order nisi).
Legal Topics
Repudiation, Anticipatory Breach, Privity of Contract, Possession, Damages, Declaratory Relief, Forfeiture, Mitigation of Loss
Source Language
en
Contract Law Property Law Landlord and Tenant Civil Remedies Repudiation Anticipatory Breach Privity of Contract Possession +4 more

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Parties

CHAN ALEX and CHAN ARRON

Plaintiffs

TAKE CARE LOGISTICS LIMITED

Defendant

Procedural Posture

Landlord and Tenant Dispute (tenancy Agreement Breach) / Judgment (district Court)

Legal Issues

  1. 1 Whether plaintiffs knew Wong was agent for a company and agreed the company would be tenant
  2. 2 Whether the provisional tenancy agreement (PTA) remained binding after the formal tenancy agreement (T/A) was signed naming the company
  3. 3 Whether the defendant was entitled to the rent‑free period in the PTA

Ratio Decidendi

On the balance of probabilities the PTA was between the plaintiffs and Wong only; the defendant was not a party to the PTA and could not take its benefits; the defendant, by indicating on 3 January 2013 that it would not proceed, repudiated the T/A and the plaintiffs validly accepted that repudiation; the defendant never obtained possession on 1 January 2013; plaintiffs proved wasted agent commission and stamp duty but failed to prove loss of rental income due to their own decisions; consequently plaintiffs awarded damages of HK$7,952.50 and must repay the defendant the balance of monies paid after set‑off; costs awarded on a 50% basis to plaintiffs.

Court Disposition

Judgment partly for plaintiffs and partly for defendant: plaintiffs awarded damages; defendant awarded repayment after set‑off; costs to plaintiffs at 50% on a party‑to‑party basis (order nisi).

Orders

  • Defendant to pay plaintiffs damages in the sum of HK$7,952.50 with interest at 1% above HSBC prime rate from date of writ to date of judgment
  • Plaintiffs to pay defendant HK$37,047.50 with interest at 1% above HSBC prime rate from date of writ to date of judgment (set‑off applied)