Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Letters of comfort

Legal area

Court

8 Jun 2007

VICTOR WONG v. VINCE PINTO AND ANOTHER

Citation

VICTOR WONG v. VINCE PINTO AND ANOTHER
Court

District Court
Case number

DCCJ2678/2005

The court found on the evidence that the 1st Defendant negotiated and arranged the loan on behalf of the 2nd Defendant and never assumed personal liability; letters of comfort and payments were acts of good faith and did not convert corporate liability into personal liability, therefore the claim against the 1st Defendant was dismissed and liability remains with the 2nd Defendant.
4 Jun 1998

BOUYGUES S.A. and Another v. SHANGHAI LINKS EXECUTIVE COMMUNITY LTD.

Citation

BOUYGUES S.A. and Another v. SHANGHAI LINKS EXECUTIVE COMMUNITY LTD.
Court

Court of First Instance
Case number

HCA3259/1998

The letters from the Defendant's lawyers and the investors contained contractual promises of future conduct and were not mere letters of comfort, but the phrase 'the Contract Price' as used in those letters and the subscription agreement was construed to mean the sums payable to the Plaintiffs for performance under the construction contract (stage payments/advance and interim certificates) and did not extend to sums payable on termination (termination damages); accordingly the Plaintiffs had no trust or contractual security for the termination sums claimed and the claim was dismissed.