Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Expectation loss
  • 19 Feb 1982

    UNIVERSAL TEXTILE CO LTD v. GINTEX TRADING CO (a firm)

    Citation
    UNIVERSAL TEXTILE CO LTD v. GINTEX TRADING CO (a firm)
    Court
    District Court
    Case number
    DCCJ4317/1980

    The court held there was an implied condition of merchantable quality under s.16(2) and s.2(5) Cap.26, found the weaving defects substantial and rendering the cloth unmerchantable for the buyer's foreseeable purpose of dyeing and resale as garments/soft furnishings, awarded the buyer combined reliance and expectation losses (wasted processing and lost profit) totalling HK$41,953.70 on the counterclaim, and after set-off against the plaintiff's claim ordered a net judgment for the defendant of HK$24,253.70.