Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Bond construction

Legal area

Court

4 Jul 2000

DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. CITYSTATE INSURANCE LTD.

Citation

DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. CITYSTATE INSURANCE LTD.
Court

Court of First Instance
Case number

HCCT81/1999

The Bond was construed as an on-demand performance bond based on its commercial context and express wording (including "irrevocably and unconditionally" and Clause 5) and the absence of words requiring proof of default; accordingly the defendant had no defence and summary judgment was entered for the plaintiff.
11 Nov 1998

AMERICAN HOME ASSURANCE CO. v. JAMES STAINLESS STEEL LTD.

Citation

AMERICAN HOME ASSURANCE CO. v. JAMES STAINLESS STEEL LTD.
Court

Court of First Instance
Case number

HCA11833/1994

The court held the Defendant liable to indemnify the Plaintiff because the Defendant had (i) effectively agreed to provide the Corporate Indemnity (by concession, acceptance of quotation, admission in correspondence and oral agreement through its agent) and (ii) the Surety Bond was properly construed as an unconditional demand bond payable on written demand and not conditional on proof of the subcontractor's default, so the Plaintiff's payment under the bond was recoverable from the Defendant.