Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

On-demand guarantee

Legal area

Court

23 Mar 2018

CLA ENGINEERING LTD v. DBS BANK (HONG KONG) LTD AND ANOTHER

Citation

[2018] HKCFI 626
Court

Court of First Instance
Case number

HCMP273/2018

The bond was an on‑demand unconditional performance bond triggered by Leighton's compliant written demand and accompanying statement; the clause relied on by CLA governed extension of the Long Stop Date and did not make payment conditional; unconscionability is not a sufficient ground to restrain payment under such a bond; Leighton was not obliged to hold any paid sum on trust absent the specified contractual trigger; accordingly the ex parte injunction was discharged and CLA's applications dismissed, though leave to abridge service and to amend were granted and a short continuation of the in…
10 Dec 1999

DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. AMERICAN HOME ASSURANCE CO.

Citation

DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. AMERICAN HOME ASSURANCE CO.
Court

Court of Appeal
Case number

CACV295/1999

On the pleadings and arguments before the court the plaintiff was entitled to judgment on the on‑demand bond because alleged continuing subcontractual obligations (due to unresolved disputes) meant the bond was not expired; the defendant was given a limited opportunity (7 days) to apply to raise a defence of lack of good faith/fraud but otherwise the appeal was allowed and judgment entered for the plaintiff.