Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Bonus (contractual incentive)
  • 6 Sept 2004

    LAND & MARINE WORKS LTD v. CREATA (HK) LTD

    Citation
    LAND & MARINE WORKS LTD v. CREATA (HK) LTD
    Court
    Court of First Instance
    Case number
    HCA14824/1999

    On the evidence the Plaintiff was late under the contractual delivery (LOBS) schedule. However, the Defendant, through its CEO, promised to pay the bonus and to bear certain additional costs (including air freight and 50% of virgin material cost) during the rescue operation; those promises amounted to waiver/estoppel with respect to bonus and air/air-sea freight and converted the HK$400,000 into a shared price component rather than a repayable advance. The Plaintiff remains liable for reasonable mitigation expenses incurred by the Defendant (helping factories costs). The parties' claims inter…