The Court of Appeal gave guidance on what constitutes sufficient notification for breach of warranty
In Invest Gain Limited v Novel Good Limited  HKCA 62, Linklaters acted for the purchaser in a shares purchase agreement in a landmark victory in upholding the validity of a notice of breach of warranties that was issued without any particularisation of the alleged breaches. This is the first case in Hong Kong SAR in which the Court of Appeal upheld such a “bald notice” clause in a shares purchase agreement, subsequent to the English authority Forrest v Glasser.
The Court of Appeal further held that, on a proper construction of the relevant clause, a notice of claim could not be given in relation to a matter that had not come to the purchaser’s knowledge at the time. In this alert, we analysed the key issues in the action and set out some practical considerations for drafting a notification clause.