Hong Kong Case Law: Decisions & Judgments

Topic

Rescission for breach

Legal area

Court

9 Feb 2012

LI TIN YAU v. LAU MAY YEE AND OTHERS

Citation

LI TIN YAU v. LAU MAY YEE AND OTHERS
Court

District Court
Case number

DCMP1012/2011

The court held that Li proved vendor Lau breached the Agreement and that the Agreement was rescinded entitling Li to return of the deposit and part payment. Because Nip’s alleged prior agreement was unregistered, Li as a subsequent bona fide purchaser for value prevailed under the LRO; the lis pendens registered by Nip on 4 November 2005 ranked after the Agreement registered in October 2005. Therefore Li has priority to the funds in court to the extent of his entitlement; he is awarded return of HK$390,000 plus interest from commencement and costs.
24 Oct 2011

CHINAWELL MANAGEMENT LTD v. STRONG HUGE CORPORATION LTD

Citation

CHINAWELL MANAGEMENT LTD v. STRONG HUGE CORPORATION LTD
Court

Court of First Instance
Case number

HCMP2246/2010

Defendant answered both requisitions without reserving its right to object to their lateness and therefore waived any timeliness objection; defendant failed to satisfactorily answer the Illegal Structure and Notice at Entrance requisitions and did not rebut the inference of unauthorized structures or dispel risk of third party claims; therefore defendant failed to show good title, repudiated the Agreement and plaintiff was entitled to rescind and recover the deposits and consequential losses; costs to be assessed.
19 Feb 2010

LEE ZOЁ v. HUI PAK FONG

Citation

LEE ZOЁ v. HUI PAK FONG
Court

Court of First Instance
Case number

HCMP157/2009

The vendor failed to give vacant possession by the contractual deadline and the items remaining were not de minimis; the vendor was late in tendering keys; the prevention principle did not apply because the plaintiff's prior conduct did not breach obligations or causally prevent the vendor's performance; therefore the plaintiff validly rescinded the agreement and is entitled to return of deposits and the cheques and an assessment of damages.
18 Jan 2005

POON MEE KUEN v. CHAN HOR TONG AND ANOTHER

Citation

POON MEE KUEN v. CHAN HOR TONG AND ANOTHER
Court

Court of First Instance
Case number

HCMP1431/2004

Vendors failed to satisfactorily answer requisitions because they only asserted partitions were non-structural without providing supporting evidence (eg architect/surveyor reports); purchaser had not waived requisitions because she was not shown to have been aware of legal consequences; Clause 22 did not shift risk of title defects; thus purchaser validly rescinded and is entitled to return of deposits, indemnities, damages, costs, interest and a purchaser's lien.
10 Feb 1998

FUNG WAI LING AND ANOTHER v. CHEUK PUI YIN AVERIL AND ANOTHER

Citation

FUNG WAI LING AND ANOTHER v. CHEUK PUI YIN AVERIL AND ANOTHER
Court

Court of First Instance
Case number

HCMP2432/1997

The 1996 statutory declaration did not satisfy s5(4)(b) because the "material time" is the time of the transaction (the 1996 release) and a declaration made before that transaction cannot establish the statutory presumption; therefore requisitions remained unanswered on 23 June 1997, the purchasers validly refused completion and later rescinded without waiver, entitling them to return of the HK$232,000 deposit with interest and costs.
29 Apr 1994

QUADRO PROPERTIES INTERNATIONAL CO. LTD. v. FUNG KAI FUNG

Citation

QUADRO PROPERTIES INTERNATIONAL CO. LTD. v. FUNG KAI FUNG
Court

Court of First Instance
Case number

HCA8933/1992

The vendor did not discharge the contractual obligation to show and prove good title by completion because originals were not produced and no acceptable explanation or proof of loss/destruction with reasonable steps taken to obtain originals was offered; no binding agreement to accept plain copies with post‑completion certified copies was proven. Therefore the purchaser validly rescinded and is entitled to recover deposits, stamp duty, title investigation costs, indemnity for agent's commission and interest and costs.

Hong Kong Case Law

LI TIN YAU v. LAU MAY YEE AND OTHERS

CHINAWELL MANAGEMENT LTD v. STRONG HUGE CORPORATION LTD

LEE ZOЁ v. HUI PAK FONG

POON MEE KUEN v. CHAN HOR TONG AND ANOTHER

FUNG WAI LING AND ANOTHER v. CHEUK PUI YIN AVERIL AND ANOTHER

QUADRO PROPERTIES INTERNATIONAL CO. LTD. v. FUNG KAI FUNG