Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Protective clause
  • 26 Nov 2002

    RE KWAN PAK HIN HENRY

    Citation
    RE KWAN PAK HIN HENRY
    Court
    Court of First Instance
    Case number
    HCB10380/2002

    The court found no proved material variation: the proceeds remained trust money and the allegation that the bank permitted HF Foods not to account was unsupported and contradicted by the trust receipt terms; alternatively, even if variation occurred, clause 3.05 of the Guarantee was sufficiently wide to cover the indulgence/variation and keep the guarantors liable; trust receipt and overdraft facilities are distinct so any variation affecting trust receipts did not discharge the overdraft liability; accordingly the petitions succeeded and bankruptcy orders were made.