Hong Kong Case Law: Decisions & Judgments

Topic

Resale after repudiation

Legal area

Court

18 Apr 2012

WIN PROFIT CORPORATION LTD v. WORLD ORIENT INVESTMENT LTD

Citation

WIN PROFIT CORPORATION LTD v. WORLD ORIENT INVESTMENT LTD
Court

Court of First Instance
Case number

HCA1487/2009

Master found plaintiff failed to mitigate: plaintiff received numerous offers immediately after breach but did not negotiate, required head office instructions and discarded offer records, and thereby unreasonably delayed resale for seven months; market value at the date of breach exceeded the contract price so no loss was proved; accordingly plaintiff entitled to no damages.
5 Nov 1999

TENG FUH CO. LTD. v. KEEN LLOYD (HOLDINGS) LTD.

Citation

TENG FUH CO. LTD. v. KEEN LLOYD (HOLDINGS) LTD.
Court

Court of Appeal
Case number

CACV193/1999

The purchaser's critical requisition as to encroachment onto government land was raised too late and, in any event, was sufficiently answered by the vendor such that there was no real risk of government re‑entry affecting the purchaser's title; the vendor was therefore entitled to terminate and forfeit the deposit. Clause 21 is not a penalty but permits recovery of actual loss and resale deficiency; an implied term requires resale within a reasonable time (six months presumptive); damages awarded accordingly (loss of bargain, mortgage interest, loss of interest at prime+2%, and expenses).
24 Sept 1999

BROAD MONEY DEVELOPMENT LTD. v. INDUSTRIAL ENGINEERS LTD.

Citation

BROAD MONEY DEVELOPMENT LTD. v. INDUSTRIAL ENGINEERS LTD.
Court

Court of Appeal
Case number

CACV101/1999

The Court held the vendor acted reasonably in rescinding the contract and accepting a firm offer from a new purchaser; under Clause 8(b) the vendor was entitled to recover its actual loss including the resale deficiency, interest, management fees, government rates and legal costs; the master’s certificate was therefore correct except that the estate agent’s commission must be reduced by HK$115,200, and the appeal was dismissed save for that reduction.

Hong Kong Case Law

WIN PROFIT CORPORATION LTD v. WORLD ORIENT INVESTMENT LTD

TENG FUH CO. LTD. v. KEEN LLOYD (HOLDINGS) LTD.

BROAD MONEY DEVELOPMENT LTD. v. INDUSTRIAL ENGINEERS LTD.