James Wong & Co. Ltd. v. Tong Tai Yun and Others

Read the full judgment text of HCA 14125/1997 on BabelCite. This High Court CFI judgment was delivered on 30 July 1999 before Godfrey JA.

Civil procedure – summary judgment – unconditional leave to defend – agency – personal liability – signature 'as buyer' without 'for and on behalf of' – whether implied negation of liability – appeal dismissed with costs

Legal issues: Summary judgment - unconditional leave to defend

Outcome: Appeal dismissed with costs.

Case No.HCA 14125/1997
Court
High Court CFI
Date30 Jul 1999
JudgeGodfrey JA
Case Document
100%Judiciary

HCA014125/1997

HCA 14125/1997

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 14125 OF 1997

BETWEEN
JAMES WONG & CO. LTD. Plaintiff
AND
TONG TAI YUN, CHAN CHOR KWONG, CHIU KWONG CHEUNG, LAM YUK CHUN, KATIE, WONG HONG WA and TANG DAMIAN trading as WING YUEN CIVIL & BUILDING CONSTRUCTION CO. Defendants

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Coram : Hon. Godfrey, J.A. in Chambers (sitting as an additional Judge of the Court of First Instance)

Date of hearing : 30 July 1999

Date of judgment : 30 July 1999

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J U D G M E N T

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1. This is an appeal from Master Muttrie who on 13 May 1999 gave the 4th and 6th defendants unconditional leave to defend an action by the plaintiff for the price of goods sold and delivered.

2. The 4th and 6th defendants are two of the partners in a firm which is said by the plaintiff to be "the buyer" under the contracts with the plaintiff. But the party expressed to be "the buyer" is in fact a different person; it is Tai Hing (E & B) Ltd. The reason why the firm is said to be liable is that a signatory duly authorised by the firm signed the contracts "as buyer". It did not do so "for and on behalf of" Tai Hing. In these circumstances, the plaintiff says that the firm, if an agent, has failed to negative its own liability and further that it should be taken as having contracted as principal, to the exclusion of Tai Hing altogether. It is said that, absent the words "for and on behalf of", to qualify the firm's signature, the firm not only may, but must, be liable to the plaintiff.

3. I do not accept this argument. No doubt the law is that a person is liable for his engagements, even though he is acting for another, unless he can show that he has expressly or impliedly negatived his personal liability. Here the firm has not expressly negatived its personal liability, but it is certainly arguable that it has done so impliedly. This depends on the objective intentions of the parties, to be determined in the light of the terms of the contract and all the surrounding circumstances.

4. These are not matters which can be investigated on an application for summary judgment. The Master was right to give the 4th and 6th defendants unconditional leave to defend. This appeal will accordingly be dismissed with costs.

(Gerald Godfrey)
Justice of Appeal

Representation:

Mr. Andy Hung, instructed by Messrs. Yuen Sung & Co., for the Plaintiff

Ms. Frances M. Irving, instructed by Messrs. Andy Choi & Co., for the 4th Defendant