Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Loan documentation (cheques)
  • 6 Apr 2016

    IP FUNG KUEN v. SAM KEE FROZEN MEAT CO LTD AND OTHERS

    Citation
    IP FUNG KUEN v. SAM KEE FROZEN MEAT CO LTD AND OTHERS
    Court
    Court of First Instance
    Case number
    HCA1897/2009

    On the balance of probabilities the court found the eight original cheques were security for loans advanced by P (total HK$1,030,000) and rejected the defendants' asserted family practice that cheques were mere receipts; the court found no reliable evidence of an oral Happy Valley Agreement imposing a condition precedent (transfer of South Horizon interest) before transfer, accepted the contemporaneous 'Letter of Ownership' signed by D2's directors as establishing an express trust (D2 held the Happy Valley Property on trust for P since completion 8 November 2004), dismissed the Debt Claim bas…