Hong Kong Case Law: Decisions & Judgments

Topic

Consideration for guarantees

Legal area

Court

7 Jul 2009

SECURITIES AND FUTURES COMMISSION v. DESCARTES INVESTMENT MANAGEMENT LTD AND OTHERS

Citation

SECURITIES AND FUTURES COMMISSION v. DESCARTES INVESTMENT MANAGEMENT LTD AND OTHERS
Court

Court of First Instance
Case number

HCMP796/2009

The judge held that a deed was unnecessary because the exchange of the injunction for the bank guarantee constituted good and sufficient consideration; the court ordered insertion of a clause (as drafted by Lovells) extending the guarantee to other proceedings by the Plaintiff and Joint Administrators, held that the guarantee is a contractual document separable from the action, granted liberty to apply to discharge the guarantee, and awarded costs to the Plaintiff in the cause for specified hearings.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA6516/1983

The Facility Letters were construed as offering term loans but reserving to the bank the right at its sole discretion to reduce, withdraw or call the facility such that loans could be called after the review date and in many cases became repayable on demand; implied terms contended for were inconsistent with express terms and did not raise triable issues; the earlier fraud action did not constitute an irrevocable election repudiating the loan contracts; however triable issues existed as to loans used to acquire Paliburg shares and as to consideration supporting certain guarantees, requiring u…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4315/1983

Facility Letters were construed as offering term loans subject to an express reservation allowing the lenders to reduce, withdraw or call the facilities (post-review they became repayable on demand); no implied term prevented demand or required notice; initiating the prior tort action did not amount to an irrevocable election to repudiate the loan contracts; triable issues existed as to loans made for purchase of Paliburg shares and as to consideration for certain guarantees, so unconditional leave to defend was required in those actions; where no triable issue existed the plaintiffs were ent…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4332/1983

The Facility Letters, read commercially and contra proferentem, reserved the lenders a continuing right to reduce or withdraw facilities and made loans callable after the review dates; implied terms preventing recall without notice or tying repayment to project success were not implied; the prior tort pleading did not constitute an irrevocable election repudiating the loans; several guarantees raised triable issues as to consideration and causation, therefore summary judgment refused for those items; where no triable issue existed judgment for plaintiffs was granted for principal sums.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA6515/1983

The Facility Letters were construed as commercial loans which the lenders reserved the right to withdraw or call (the review date did not create an absolute bar to demand); implied terms shielding borrowers from demand or making repayment contingent on commercial success were not to be implied; no irrevocable election to repudiate was demonstrated by the earlier fraud proceedings; however triable issues existed concerning loans made for acquisition of Paliburg shares and as to consideration for certain guarantees, requiring trials or unconditional leave to defend in those actions; summary jud…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA6768/1983

On construction and implication from the facility letters and surrounding circumstances the loans were not in every case prematurely demanded; however triable issues existed concerning loans used to purchase Paliburg shares and concerning consideration for several guarantees; where no triable issue existed the plaintiffs were entitled to summary judgment for principal sums claimed; unconditional leave to defend was granted only in actions where triable issues were identified.
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4399/1983

Facility Letters construed to permit the lenders to reduce or withdraw facilities and to call loans after the review dates (effectively turning unpaid term loans into demand obligations); the defendants failed to raise triable issues based on express or implied terms or election except in limited categories (loans for Paliburg share purchases and existence of consideration for certain guarantees) where issues of fact exist and unconditional leave to defend was ordered; where no triable issue existed summary judgment was entered for principal sums and certain default judgments were set aside o…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4307/1983

The Facility Letters, construed in their commercial context and contra proferentem, reserved to the lenders a discretion to reduce or withdraw facilities and to call loans on demand after the review dates; no triable issues arose from the express terms or the proposed implied terms or from the plea of election, but triable issues did arise concerning loans made to purchase Paliburg shares and concerning consideration supporting certain guarantees; accordingly summary judgment was entered for plaintiffs for principal sums in specified actions where no triable issue existed and unconditional le…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4321/1983

The Facility Letters were construed to permit the bank to call in or reduce facilities (loans were effectively callable on demand after review dates); no implied term prevented recall or required notice; the earlier fraud action did not constitute an irrevocable election to repudiate the loan contracts; triable issues existed as to certain alleged Paliburg share-purchase agreements and as to consideration for several guarantees; accordingly summary judgment granted for principal sums in a number of actions while unconditional leave to defend was ordered where triable issues were identified an…
15 Sept 1983

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS

Citation

LLOYDS BANK INTERNATONAL LTD AND ANOTHER v. DERICOURT INVESTMENTS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA4327/1983

Facility Letters reserved the lenders a discretion to reduce, withdraw or call in facilities and the review date did not create an absolute obligation to maintain the loan for a fixed term; no implied terms prevented the lenders calling the loans or required notice; pleading of tort claims in earlier proceedings did not amount to an irrevocable election to repudiate the loan contracts; triable issues existed concerning Paliburg share-purchase arrangements and consideration for certain guarantees; where no triable issue was raised plaintiffs were entitled to summary judgment for principal sums…