Hong Kong Case Law: Decisions & Judgments

Topic

Acceptance of title

Legal area

Court

7 May 2002

FLYWIN CO. LTD. v. STRONG & ASSOCIATES LTD.

Citation

FLYWIN CO. LTD. v. STRONG & ASSOCIATES LTD.
Court

Court of Final Appeal
Case number

FACV15/2001

The Court held that the Vendor's new 'subject‑matter of sale' point was a new issue not taken at trial or argued on intermediate appeal and was therefore barred by the state‑of‑evidence and 'not considered on intermediate appeal' hurdles; on the merits the alternative acceptance/waiver/affirmation argument failed because the Purchaser did not accept or waive objections to the unauthorised extensions and raised requisitions within a reasonable time.
3 Dec 2001

BILLION BEST (HONG KONG) LTD. v. AMITY INVESTMENT CO. LTD. AND ANOTHER

Citation

BILLION BEST (HONG KONG) LTD. v. AMITY INVESTMENT CO. LTD. AND ANOTHER
Court

Court of First Instance
Case number

HCMP2263/1998

Clause 7 did not preclude the purchaser from raising requisitions in respect of substantial unauthorised building works of which the vendors had actual knowledge but the purchaser did not; it would be unconscionable to construe the clause to force acceptance of a defective title known to the vendors; the purchaser had no actual knowledge until March 1998; the vendors failed to show and give a good title and the purchaser's requisition was properly raised and unanswered.
30 Jun 1999

CHIU KIN ON v. HENMY INTERNATIONAL LTD.

Citation

CHIU KIN ON v. HENMY INTERNATIONAL LTD.
Court

Court of First Instance
Case number

HCMP4956/1998

The contractual seven‑day period to raise requisitions applied; under the binding authority in Hillier a purchaser may only avoid the time limit if the defect could not have been discovered with due diligence before expiry. Here the purchaser knew or could with reasonable diligence have discovered the defects (including the apparent illegal flower cage and matters apparent from supplied title deeds); the requisitions were raised outside the contractual period and are therefore waived; consequently the purchaser is treated as having accepted title and the vendor is entitled to the remedies cla…
17 Jun 1994

LAI CHI ON v. STRONG SING DEVELOPMENT LIMITED

Citation

LAI CHI ON v. STRONG SING DEVELOPMENT LIMITED
Court

Court of First Instance
Case number

HCMP695/1994

The court found that by forwarding the draft Assignment on 2 March 1994, requesting cheque instructions and enclosing undertakings, the Purchaser's solicitors conclusively accepted the Vendor's title and waived any objections; consequently the Purchaser could not raise the 4 March requisition nor obtain rescission or refund; Tread East was determinative; no duty was imposed on vendor's solicitors to volunteer defects.
17 Jun 1993

HILLIER DEVELOPMENT LTD. v. TREAD EAST LTD.

Citation

HILLIER DEVELOPMENT LTD. v. TREAD EAST LTD.
Court

Court of Appeal
Case number

CACV209/1992

The Court of Appeal held that the purchaser had accepted the vendor's title before the mortgagee's requisition was communicated (the draft assignment and inquiry as to payment constituted acceptance and waiver of prior objections), that s.23 presumption and the indoor management rule prevent a purchaser from requiring production of internal company authorisations for an apparently duly executed instrument, and that the contractual time limit for requisitions applied; accordingly the appeal was allowed and the trial judge's orders were set aside.
11 Nov 1992

TREAD EAST LTD v. HILLIER DEVELOPMENT LTD

Citation

TREAD EAST LTD v. HILLIER DEVELOPMENT LTD
Court

Court of First Instance
Case number

HCA907/1991

Vendor failed to satisfactorily answer a substantive requisition that raised a real prospect the 12 Sept 1984 assignment could be set aside; although the due execution point was covered by s.23 and the Turquand rule and had been waived, the vendor's refusal to dispel the risk of set‑aside justified the purchaser terminating the contract and recovering the initial deposit and obtaining the declaration as to the stakeholder deposit.

Hong Kong Case Law

FLYWIN CO. LTD. v. STRONG & ASSOCIATES LTD.

BILLION BEST (HONG KONG) LTD. v. AMITY INVESTMENT CO. LTD. AND ANOTHER

CHIU KIN ON v. HENMY INTERNATIONAL LTD.

LAI CHI ON v. STRONG SING DEVELOPMENT LIMITED

HILLIER DEVELOPMENT LTD. v. TREAD EAST LTD.

TREAD EAST LTD v. HILLIER DEVELOPMENT LTD