The World Food Fair Ltd & Another v. Hong Kong Island Development Ltd
Case Background
1st Plaintiff – The World Food Fair Limited (formerly know as wealth state Investments Limited)
2nd Plaintiff – The World Enterprises Holdings Limited
Defendant – Hong Kong Island Development Limited (Owner of shopping mall and two plaintiffs are the owners of retail shops)
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In 1996, after conference, the plaintiffs brought an action against the defendant for breach of an agreement to grant them a tenancy at the defendant’s shopping mall. The defendant and plaintiffs reach a verbal agreement, such as monthly rent, management pre-pay HKD$ 200,000 for beginning deposit.
In Feb-Jul 1997, they circulated the letter of intent by a formal agreement, recommended the lease, right of renewal, rent-free period and the draft lease agreement, etc. Moreover each side have letter conversation to consider the possibility of formulate a new agreement, unfortunately they didn’t achieve.
In 5 July 1997, defendant let plaintiffs enter and manage that site, so the contractors can start the fitting-out works. All plain had published the advertisements to hire the food, beverage contractors and employees. But the rental agreements still not sign.
In 29 July 1997, plaintiffs know that defendant opposition to build a food court in shopping mall, and intend to establish a “medium and high grade restaurant with comprehensive services”. At that time, plaintiffs already pay a lot of money to decorate the site. They want defendant return the deposit and to make damages, plaintiffs claim that both sides already make agreement from all provision.
A verbal contract with intent and immediate binding, established on 27 January 1997, when plaintiffs pre-pay the deposit. Therefore, defendant’s actions will results as a breach of contract. Contrary, defendant advance that deposit has to confiscate, and the important term still in discussion level (beginning
1st Plaintiff – The World Food Fair Limited (formerly know as wealth state Investments Limited)
2nd Plaintiff – The World Enterprises Holdings Limited
Defendant – Hong Kong Island Development Limited (Owner of shopping mall and two plaintiffs are the owners of retail shops)
-------------------------------------------------------------------------------------------------------
In 1996, after conference, the plaintiffs brought an action against the defendant for breach of an agreement to grant them a tenancy at the defendant’s shopping mall. The defendant and plaintiffs reach a verbal agreement, such as monthly rent, management pre-pay HKD$ 200,000 for beginning deposit.
In Feb-Jul 1997, they circulated the letter of intent by a formal agreement, recommended the lease, right of renewal, rent-free period and the draft lease agreement, etc. Moreover each side have letter conversation to consider the possibility of formulate a new agreement, unfortunately they didn’t achieve.
In 5 July 1997, defendant let plaintiffs enter and manage that site, so the contractors can start the fitting-out works. All plain had published the advertisements to hire the food, beverage contractors and employees. But the rental agreements still not sign.
In 29 July 1997, plaintiffs know that defendant opposition to build a food court in shopping mall, and intend to establish a “medium and high grade restaurant with comprehensive services”. At that time, plaintiffs already pay a lot of money to decorate the site. They want defendant return the deposit and to make damages, plaintiffs claim that both sides already make agreement from all provision.
A verbal contract with intent and immediate binding, established on 27 January 1997, when plaintiffs pre-pay the deposit. Therefore, defendant’s actions will results as a breach of contract. Contrary, defendant advance that deposit has to confiscate, and the important term still in discussion level (beginning