Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Due diligence under provisional sale agreement
  • 8 Sept 2021

    WANG SHENG v. SIN YUK LING

    Citation
    [2021] HKDC 1068
    Court
    District Court
    Case number
    DCMP760/2020

    The court held the PSPA required the vendor to procure discharge of the Company’s obligations under the tripartite Legal Charge; the Draft Release only released the Property and did not discharge the Company’s personal liabilities under the Legal Charge; absence of documentary proof from OCBC left uncertainty as to outstanding secured indebtedness; the vendor’s insistence on the Draft Release demonstrated anticipatory breach of Clauses 5 and 10(e); the purchaser validly terminated and was entitled under Clause 16(b) to return of the deposit and liquidated damages plus interest and costs.