Witholding payment from restaurant

Posted by Tidings 2 (351 days ago)

Scenario:

Friend who is also a wine supplier borrows money from the manager of a restaurant............the money cannot be paid back yet.
The accountant from the restaurant is witholding the payments to the supplier for the loan.....is that legal in Hong Kong? There was nothing in writing what so ever that the payments to the wine supplier could be withheld.

(I am based in Hong Kong)

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Posted by Claire (351 days ago)

"Verbal contract isn't worth the paper it's written on." - SG

If the loan was from the manager not the actual restaurant, then it's a personal loan. What the restaurant does, or does not do, would be a separate issue.

(I am based in Unspecified)

Posted by gdbill (351 days ago)

Actually, in HK a verbal contract is definitely enforceable if there is independent evidence to substantiate the terms.

The issue described here is a civil issue that will cost the wine supplier time and a lot of money to hash out in HK courts with no clear chance of winning in the end. Best thing he can do is pay what he owes and stop being a deadbeat.

(I am based in Guangzhou)

Posted by banmenot (350 days ago)

What is the official answer, not the "judge the deadbeat" answer?

(I am based in Hong Kong)

Posted by gdbill (349 days ago)

Official answer: A verbal contract may be enforceable. In any event, withholding payment from wine supplier is an issue that, being civil in nature, would need to be brought before the courts at great expense (both money and time) and there being the very real risk of losing.

(I am based in Guangzhou)

Posted by douglaskoh (348 days ago)

The manager can transfer the debt to the restaurant. The restaurant can therefore square off the two debts.

(I am based in Guangzhou)

Posted by gdbill (348 days ago)

^ Right. Just about the only way the wine supplier can recover the offset amounts is by going into court, but there is no guarantee that the wine supplier will win.

(I am based in Guangzhou)