Hong Kong Result of Breach of Contract (Breach of Contract)

LW014A-1645 Certificate in Legal
Studies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Contractual law of Hong Kong........................................................................................................4
Result or the outcome of Breach of Contract..................................................................................5
Case scenario of Jessica Chan.........................................................................................................6
The Sale of Goods Ordinance (Cap 26)...........................................................................................6
Remedies for breach of contract......................................................................................................7
Summary judgment and Hong Kong Civil Procedure.....................................................................8
Case scenario of Gonga Li...............................................................................................................8
Order 14 (rule 1)..............................................................................................................................8
ORDER 13.......................................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

INTRODUCTION
In order to deal with the complexities that have arisen within the society and thereby adjudicate
those in the most appropriate manner rules and legislations are being enacted by any particular
country. In regard to the legal system that is being drafted and formulated in Hong Kong the
principles of rule of law and the process of judicial activism has been given priority in the same.
Based on the rules and policies of the national law of the People’s Republic of China the basic
constitutional framework at Hong Kong have been framed which is in complete conformity to
the policy of “one country, two systems”. Though some of the rules and guidelines have been
borrowed from PRC and incorporated in to the Hong Kong law regime but the majority of the
rules and policies are distinguished in nature from the former one. In the present assignment
based on the provided case scenario the appropriate rules and policies of the Hong Kong law
regime will be discussed in detail with the objective of resolving those issues.

Contractual law of Hong Kong
The basis of the contractual law of Hong Kong has been derived from the rules and principles
that are being enunciated within the Common law or the English Contractual Law. As stated by
Hedley that the principles and guidance provided the common law have formed the general
principle that has the potential of governing all kinds of contractual agreements. In the case of
Geys Vs. Societe Generale [2012] 1 AC 5231 it was being decided by the learned court of
justice that the all kinds of contracts and their technicalities can be addressed to by the general
principles of common law. one of the major characteristics that has been incorporated in to the
contractual law of Hong Kong is the aspect of objective principle as a consequence of which
the acts and words of one party can only be construed in the manner the other party has
understood it. This principle was first enacted in the case of McCutcheon Vs. David
MacBrayne Ltd (1964) 1 WLR 1252. In the present case it was being pronounced as a universal
principle that the courts are required to analyse any contractual agreement based on the
reasonable construction of parties towards the act and attitude of each other3.
In addition to this principle there is another scope which is being provided to the parties in regard
to the scope of entering in to any contract is the principle of Freedom of contract. Under the
ambit of this principle the parties are provided with the scope of entering into wide range of
contracts and the same was being validated in the case of Printing & Numerical Registering
Co. Vs. Sampson (1875)4. It was being held by the court of justice that as the basic rule of
1 'Case Comment: Société Générale V Geys [2012] UKSC 63' (UKSCBlog, 2019)
<http://ukscblog.com/case-comment-societe-generale-v-geys/> accessed 24 January 2019.
2 'Mccutheon V David Macbrayne Ltd – 1964' (Lawteacher.net, 2019)
<https://www.lawteacher.net/cases/mccutcheon-v-david-macbrayne.php> accessed 24 January
2019.
3 Poole, Jill. Textbook on contract law. Oxford University Press, 2016.
4 'Printing And Numerical Registering Co V Sampson - Alchetron, The Free Social
Encyclopedia' (Alchetron.com, 2019) <https://alchetron.com/Printing-and-Numerical-
Registering-Co-v-Sampson> accessed 24 January 2019.