Witholding payment from restaurant



ORIGINAL POST
Posted by Tidings 2 19 yrs 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.

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COMMENTS
Claire 19 yrs 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.

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gdbill 19 yrs 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.

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banmenot 19 yrs ago
What is the official answer, not the "judge the deadbeat" answer?

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gdbill 19 yrs 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.

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douglaskoh 19 yrs ago
The manager can transfer the debt to the restaurant. The restaurant can therefore square off the two debts.

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gdbill 19 yrs 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.

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