Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

On-demand performance bonds
  • 18 Dec 2001

    KENWORTH ENGINEERING LTD. v. AIRPORT AUTHORITY

    Citation
    KENWORTH ENGINEERING LTD. v. AIRPORT AUTHORITY
    Court
    Court of First Instance
    Case number
    HCCT72/2000

    The court held that none of the implied terms alleged should be implied: the accounting/repayment term was not to be implied into the bond (Kenworth lacked privity and the bond functions without such a term), the proper locus for any accounting is the underlying subcontract between Nishimatsu and Kenworth, the limited contract arising from the tender did not support the pleaded implication, and the 2 April 1998 letter did not create a direct contract between Airport Authority and Kenworth so no implied 'not to hinder' term arose; the challenged parts of the pleadings were struck out and the a…