Read the full judgment text of HCCT 65/2019 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 30 September 2022 before Hon G Lam JA in Court (sitting as an additional Judge of the Court of First Instance).
Construction law — Contract formation — Whether two lump-sum contracts existed based on quotations with agreed discounts — Whether lack of unit rates and breakdown invalidated contracts — Repudiation by employer by termination of engagement — Compensation for work done and loss of profits. Plaintiff BeSpark Technologies Engineering Limited engaged Defendant A-Tech M & E Engineering Limited for part of electrical installations in Tseung Kwan O development. Dispute arose over whether contracts were lump-sum agreements or temporary arrangements terminable on one day’s notice. Court found that two lump-sum contracts were formed supported by signed amended quotations, meetings, and subsequent conduct. Lack of unit rates and breakdown did not negate contractual binding; these details were not regarded as essential terms. Upon BeSpark's repudiatory termination, A-Tech entitled to payment for work done of HK$1,472,522.53 net and damages for loss of profits valued at HK$1,523,402.83 based on a reasonable 7.5% margin. BeSpark’s action dismissed; judgment entered for A-Tech totaling HK$2,995,925.36 with interest and costs awarded.
Legal issues: Nature and terms of the parties’ agreements · Whether the contracts contained all the essential terms · Relief for work already done under repudiated lump sum contracts · Damages for loss of profits
Outcome: BeSpark’s claim dismissed; judgment for A-Tech on counterclaim for $2,995,925.36 including work done and loss of profits.
Cited by 2 cases