Law Commons^™

Contract Law Update 2014, Yihan Goh

Research Collection Yong Pung How School Of Law

With the end of 2014 almost upon us, it is apposite to take stock of the more important developments in Singapore contract law in the year. This entry examines four cases that straddle important developments across various fields in contract law, namely, formation, terms, breach and illegality. In each case, it can be seen that the Singapore courts are anxious to consolidate existing law, and to chart new courses where relevant and appropriate.

Was Singapore Airlines Liable For Business-Class Seats Sold At Economy Rates?, Yihan Goh

Research Collection Yong Pung How School Of Law

Much has been reported about Singapore Airlines (“SIA”) mistakenly charging economy rates for around 900 business-class seats due to a computer input error. Yesterday, SIA said that it would honour those tickets at economy rates, reversing its previous position that it would not, and closing the episode on a note of goodwill. This blog entry explores the legal analysis behind the episode on the assumption that Singapore contract law applies, so as to maintain its general relevance to a Singaporean audience and its specific application to online retailers concerned about making similar pricing errors. Of course, the analysis would differ …

R1 International Pte Ltd V Lonstroff Ag [2014] Sgca 56: Lessons In Contractual Formation, Yihan Goh

Research Collection Yong Pung How School Of Law

The rules relating to contractual formation are easy to state but difficult to apply in the varied circumstances of practice. It is therefore helpful that the recent Court of Appeal decision of R1 International Pte Ltd v Lonstroff AG [2014] SGCA 56 (“R1 International”) provides much guidance in this area of the law.

R1 International concerned whether a set of terms to arbitrate in Singapore, found in a detailed contract note sent by the appellant to the respondent shortly after their deal (“the deal”) was concluded, was incorporated as part of the contract between the parties. The answer …

Restitution Of Mistaken Enrichment Under Section 73 Of Malaysia's Contracts Act 1950: Pouring New Wine Into An Old Bottle?, Alvin W. L. See

Research Collection Yong Pung How School Of Law

This article makes two main suggestions regarding the interpretation of s 73 of Malaysia's Contracts Act 1950, which sets out the right to recover a mistaken enrichment. The first suggestion is that the courts should have regard to the historical background against which the section was enacted, especially because the pre-enactment common law was a historical curiosity. This will dispel certain misconceptions about the nature of the statutory right by shedding light on its supposed affinity with contract and its relationship with the obsolete forms of action and the principle of unjust enrichment. The second suggestion is that the content …

Subject To Review? Consideration, Liquidated Damages And The Penalty Jurisdiction, Eliza Mik

Research Collection Yong Pung How School Of Law

The paper examines the relationship between what seem to be basic principles in contract law: "consideration need not be adequate" and "the rule against penalties applies only to sums payable on breach." The 'reluctant inspiration' lies in the recent Australian case of Andrews v. Australia and New Zealand Banking Group Ltd, which establishes that the absence of breach or an obligation to avoid the occurrence of an event upon which a sum becomes payable, does not render such sum incapable of being characterized as a penalty. This decision constitutes an unexpected divergence from the position in most other common law …

Terms Of Use: Reflections On A Theme, Eliza Mik

Research Collection Yong Pung How School Of Law

The paper presents multiple perspectives on the unpopular but omnipresent terms of use (or "ToUs"), i.e. terms and conditions contained in a link at the bottom of many websites. ToUs serve different functions: from governing the transaction taking place on a website, (e.g. contracts of sale) to the very act of browsing. Accordingly, every browsing experience has both a commercial and a legal tint. On a theoretical level ToUs raise concerns with regards to their validity as legally binding contracts as well as to their incorporation. Both formation and incorporation converge on the presence and quality of contractual intention. The …

Joint Product Improvement By Client And Customer Support Center: The Role Of Gain-Share Contracts In Coordination, Shantanu Bhattacharya, Alok Gupta, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

We study the role of different contract types in coordinating the joint product improvement effort of a client and a customer support center. The customer support center's costly efforts at joint product improvement include transcribing and analyzing customer feedback, analyzing market trends, and investing in product design. Yet this cooperative role must be adequately incentivized by the client, since it could lead to fewer service requests and hence lower revenues for the customer support center. We model this problem as a sequential game with double-sided moral hazard in a principal-agent framework (in which the client is the principal). We follow …

A Wrong Turn In History: Re-Understanding The Exclusionary Rule Against Prior Negotiations In Contractual Interpretation, Yihan Goh

Research Collection Yong Pung How School Of Law

A reason justifying the exclusionary rule against prior negotiations in the interpretation of contracts is its longevity. Yet, the authorities commonly cited in support of the exclusionary rule are mostly traceable to Lord Wilberforce’s speech in the relatively recent case of Prenn v Simmonds. This article suggests that the law took a wrong turn in that case and caused later courts to support the exclusionary rule by recourse to policy-oriented justifications, instead of principle-based ones. The emphasis on policy-oriented justifications, and the recantation of Prenn v Simmonds as reason enough for the exclusionary rule, support an independent rule against prior …