Hong Kong Case Law: Decisions & Judgments

Topic

Inspection rights

Legal area

Court

17 Aug 2011

KUDOS KNITTING (HK) CO LTD v. ZAMIRA FASHION LTD

Citation

KUDOS KNITTING (HK) CO LTD v. ZAMIRA FASHION LTD
Court

District Court
Case number

DCCJ5393/2009

Defendant accepted 6,445 pieces after inspection and thereby lost the right to reject; 1,529 pieces were proved defective on balance of probabilities and defects were caused by plaintiff's workmanship; defendant entitled to damages for breach of warranty measured by difference in value at delivery (1529 x US$14.06) plus reasonable incidental costs, but award limited to pleaded counterclaim amount; net judgment awarded plaintiff US$11,136.75 after set-off.
2 Dec 2009

RICHOLD S.A. v. NEW ECLAT MANUFACTURING LTD

Citation

RICHOLD S.A. v. NEW ECLAT MANUFACTURING LTD
Court

Court of First Instance
Case number

HCA1408/2006

The court ordered that the defendant pay the fees and expenses of Ferrier Hodgson insofar as they are fees and expenses of Ferrier Hodgson acting as custodian and that those costs be taxed immediately if not agreed, but rejected the claim that the defendant must pay the plaintiff's solicitors' costs for inspection; further, the custodian need not remain for the entire inspection if the defendant or its representatives attend.
24 Dec 2004

SECRETARY FOR JUSTICE v. LEE KIN CHUN t/a LEE CHAI MOTOR SPARE PARTS

Citation

SECRETARY FOR JUSTICE v. LEE KIN CHUN t/a LEE CHAI MOTOR SPARE PARTS
Court

District Court
Case number

DCCJ3647/2001

The court held that 'with engine' includes vehicles whose engines or main engine parts remain with the vehicle even if left at the back (not necessarily fitted in the engine bracket); on the evidence the three complained-of RCVs were 'with engine' and the defendant had opportunity to inspect and did receive or was aware of demand notes, so he was not entitled to reject Part A or Part B; the plaintiff properly mitigated by public auction; judgment for plaintiff for the shortfall after accounting for the deposit and with interest from 1 January 1998 at HSBC short-term 7-day deposit rate then ju…
14 Oct 1992

MAYCAS GARMENT MANUFACTURER v. ARIES INVESTMENT LTD. AND OTHERS

Citation

MAYCAS GARMENT MANUFACTURER v. ARIES INVESTMENT LTD. AND OTHERS
Court

Court of Appeal
Case number

CACV72/1992

Inspection occurring after the contractual deadline did not constitute an unequivocal waiver of the 6 July delivery date; the 3rd and 4th contracts were validly extended to 12 and 15 July and defendants breached by cancelling those two contracts; the 5th contract was cancelled by mutual agreement and the 6th contract was lawfully terminated for breach. Consequently the trial judgment was set aside in part and substituted: plaintiff succeeds on 3rd and 4th contracts, fails on 5th and 6th, damages for 3rd and 4th to be assessed and specified costs orders made.
4 Aug 1981

YEE FUNG TEXTILE TRADING CO LTD v. CHIVAN INTERNATIONAL LTD

Citation

YEE FUNG TEXTILE TRADING CO LTD v. CHIVAN INTERNATIONAL LTD
Court

Court of First Instance
Case number

HCA3442/1980

The defendant breached the contract by failing to open a documentary credit in the terms and by the time required; the L/C actually opened was materially non-compliant (weight specification and an unexpected inspection-certificate requirement) and therefore did not satisfy the contractual obligation which was a condition precedent to the seller's further performance; inspection was not a condition precedent to opening the L/C; plaintiff entitled to damages for resale shortfall, with set-off for the HK$30,000 margin.

Hong Kong Case Law

KUDOS KNITTING (HK) CO LTD v. ZAMIRA FASHION LTD

RICHOLD S.A. v. NEW ECLAT MANUFACTURING LTD

SECRETARY FOR JUSTICE v. LEE KIN CHUN t/a LEE CHAI MOTOR SPARE PARTS

MAYCAS GARMENT MANUFACTURER v. ARIES INVESTMENT LTD. AND OTHERS

YEE FUNG TEXTILE TRADING CO LTD v. CHIVAN INTERNATIONAL LTD