Parties to a contract have an implied duty to cooperate in the performance of contractual obligations

In Quick Switch Ltd v Shining Star Super Seafood Ltd ([2011] HKEC 232) premises had been let to the tenant for the operation of a Fraternity Association (for the playing of mahjong and ancillary service of food). In breach of covenant, the tenant failed to get the necessary gaming licence. The landlord sought possession of the property. The tenant resisted and claimed that the landlord had refused to supply the information needed to allow the licence to be obtained. It had failed to live up to the implied duty of parties to a contract to cooperate with each other in the performance of contractual obligations. The forfeiture claim succeeded but the tenant was granted relief. The landlord was ordered to provide specified assistance to the tenant to allow it to obtain the necessary licence.

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