Contracts Commons^™

Good Faith: Helping Commercial Parties Or Creating An Unnecessary Burden?, Ee-Ing Ong

Research Collection Yong Pung How School Of Law

One of the challenges facing Asian legal systems in the coming years is whether the courts should impose a general duty of good faith in contracts. The doctrine of good faith has been making inroads in various common law jurisdictions, most recently in Canada where the Supreme Court held in Bhasin v. Hrynew, 2014 SCC 71 that there was a duty of honest performance in all contracts. The idea behind imposing a duty of good faith in all contracts is to ensure that parties essentially “play fair” in contract negotiations and/or performance. However, is such a duty really necessary for …

Non-Delegable Duty Of Care: Woodland V Swimming Teachers Association And Beyond, Kee Yang Low

Research Collection Yong Pung How School Of Law

The subject of non-delegable duty of care has troubled Judges and jurists alike. This article examines the recent Woodland case, where the UK Supreme Court attempted to provide a comprehensive and coherent legal framework.

Identifying An Interest In Land Sufficient To Support A Caveat: Salbiah Bte Adnan V Micro Credit Pte Ltd [2014] Sghc 249, Alvin W. L. See

Research Collection Yong Pung How School Of Law

The difficult issue of what constitutes an interest in land sufficient to support a caveat (“caveatable interest”) recently presented itself before the High Court in the case of Salbiah Bte Adnan v Micro Credit Pte Ltd, which concerned a caveat lodged to protect an alleged security interest. The decision deserves the attention of property lawyers for it helpfully addressed various principles of property law relating, directly and indirectly, to the lodgment of caveats.

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 …

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.

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 …

Case Comment: A New Framework For The Implication Of Terms In Fact, Yihan Goh

Research Collection Yong Pung How School Of Law

In Sembcorp Marine Ltd v PPL Holdings Pte Ltd the Singapore Court of Appeal once again reaffirmed the Singapore courts’ rejection of the approach adopted by Lord Hoffmann in Attorney General of Belize v Belize Telecom Ltd which characterised the implication of a term in fact as a process of contractual interpretation. What may be of interest to practitioners and academics of common law jurisdictions wrestling with the implications of the Belize approach is the Court of Appeal’s prescription of ‘a three-step process’ for the implication of terms in fact, which is accompanied by an in-depth discussion of various conceptual …

Contractual Interpretation In Indian Evidence Act Jurisdictions: Compatibility With Modern Contextual Approach, Yihan Goh

Research Collection Yong Pung How School Of Law

This paper examines the approaches towards contractual interpretation taken by Commonwealth jurisdictions governed by the Indian Evidence Act. While some of these jurisdictions import the modern contextual approach into their domestic approaches, it will be argued that it is largely compatible with the Indian Evidence Act. In particular, it will be shown that a limited adoption of the modern contextual approach is permissible, namely one involving the limited admissibility of extrinsic evidence to interpret contracts, subject to the requirement of ambiguity. An integrated approach may represent the best way of following the modern contextual approach, while remaining faithful to the …

Australia's Proposed Exercise In Contract Law Reform: International Convergence And Regional Implications, Basil C. Bitas

Research Collection Yong Pung How School Of Law

In July 2012, the Australian Attorney-General’s Department began soliciting comment regarding the best way to reform Australian contract law to render it more suitable for the demands of 21st century commerce. The effort marks an appreciation of the changing commercial environment and challenges the traditional common law preference for piecemeal, organic reform through case law. The proposed effort has implications for the global convergence of legal systems and further poses practical questions as to what form any such contractual reform should take. Codification in the European, civil law sense is a possible but unlikely outcome. A persuasive but non-binding restatement …

A Psychology Of Choice Of Laws, Gary Low

Research Collection Yong Pung How School Of Law

There is certainly a lot of choice going around in the market for contract law. This is a good thing, since choice is key to self-determination and may help improve our laws. Yet there may be such a thing as choice overload, and the introduction of the Common European Sales law is a timely reminder to consider its effect for the market for contract law. This article does just that. It explains what choice overload is, why it comes about, and what can be done to ameliorate its effects. The conclusion is that CESL will not cause choice overload but …

A Psychology Of Choice Of Laws, Gary Low

Research Collection Yong Pung How School Of Law

There is certainly a lot of choice going around in the market for contract law. This is a good thing, since choice is key to self-determination and may help improve our laws. Yet there may be such a thing as choice overload, and the introduction of the Common European Sales law is a timely reminder to consider its effect for the market for contract law. This article does just that. It explains what choice overload is, why it comes about, and what can be done to ameliorate its effects. The conclusion is that CESL will not cause choice overload but …

Deposits: At The Intersection Of Contract, Restitution, Equity And Statute, Tiong Min Yeo

2009 Yong Pung How Professorship of Law Lecture

Whether a partial payment is recoverable in restitution by a party in breach of contract depends on the classification of the payment as a deposit or a part-payment. A part payment may be recoverable in unjust enrichment if the contract is terminated and a vitiating factor can be found (usually total failure of consideration in this context), and subject to a counterclaim for damages. However, a deposit is intended to be earnest for performance and will not be recoverable, at least generally. Six questions will be considered: (1) Is the penalty rule applicable to a deposit? (2) If not, is …

Book Review: Remedies For Breach Of Contract By Solene Rowan, Howard Hunter

Research Collection Yong Pung How School Of Law

No abstract provided.

An Introduction To The Law Of Unjust Enrichment, Alvin W. L. See

Research Collection Yong Pung How School Of Law

The principle that no one shall be unjustly enriched at the expense of another has been invoked to rationalise the right to restitution in a number of cases which fall outside the provinces of contract and tort. This has eventually led to the recognition of an independent legal discipline known as the law of unjust enrichment. It is among the most debated private law subjects today despite its remarkably recent origin. In Malaysia, despite the increase in judicial reference to the language of unjust enrichment to justify an award of restitutionary relief, there is generally a lack of understanding about …

Certainty At Last?: A "New" Framework For Electronic Contracting In Singapore, Eliza Mik

Research Collection Yong Pung How School Of Law

Singapore is the first Asian country to accede to the UNCITRAL Convention on the Use of Electronic Communications in International Contracts (“CUECIC” or “Convention”). Upon accession, the Singaporean Electronic Transactions Act (“ETA” or “Act”) was repealed and re-enacted in a modified version, with effect from 1 July 2010. The modified ETA retains the framework of the original ETA but adds or amends certain provisions dealing with electronic contracting to align domestic e-commerce regulations with the Convention. Accordingly, Singapore is not only the first Asian nation to accede to the CUECIC but also the first nation to implement some of its …

Setting Aside An Award Over The Mis-Application Of A Choice Of Law Clause: Quarella Spa V Scelta Marble Australia Pty Ltd [2012] Sghc 166, Darius Chan

Research Collection Yong Pung How School Of Law

In Quarella SpA v Scelta Marble Australia Pty Ltd [2012] SGHC 166, the High Court of Singapore (per Prakash J) rejected an application to set aside two related arbitration awards. The ground for setting aside was an alleged misinterpretation of a choice of law clause by the tribunal. In rejecting the application, the High Court demonstrated its unwillingness to set aside an award when the tribunal has considered and respected the choice of law clause (regardless of the interpretation the tribunal ultimately preferred). Notably, the High Court did not close the door on instances where the tribunal may have failed …

Past Consideration Or Unconnected Consideration, Yihan Goh, Man Yip

Research Collection Yong Pung How School Of Law

It is trite law that a valid and enforceable contract must be supported by consideration. The recent Court of Appeal case of Rainforest Trading Ltd v State Bank of India Singapore [2012] 2 SLR 713 is a further addition to the local jurisprudence on consideration, specifically the issue of past consideration. This note considers the specific issue of past consideration and argues that its label should be discarded in favour of a more realistic one that correctly emphasises its underlying concerns.

Mistaken Identity, Identity Theft And Problems Of Remote Authentication In E-Commerce, Eliza Mik

Research Collection Yong Pung How School Of Law

The problem of mistaken identity in e-commerce transactions brings together seemingly unrelated issues: privacy, network security, digital signatures – and classic contract law. The technological characteristics of the Internet have a tendency to turn traditional legal doctrines on their head, or, at least expose flaws in existing legal arguments. Combining an academic exercise with the practical implications of the insecurity of the Internet, this paper draws some unexpected conclusions regarding cases of mistaken identity. The latter must be analysed afresh with a number of factors in mind: the more widespread use of fictitious identities in on-line transactions, the higher incidence …

Unitas Via Diversitas. Can The Common European Sales Law Harmonize Through Diversity?, Gary Low

Research Collection Yong Pung How School Of Law

The proposed Regulation for a Common European Sales Law (CESL),1 unveiled on 11 October 2011, marks the opening legislative salvo on the future of European contract law. Besides critique from private lawyers on the substantive content therein,2 the legality of the CESL under Union law may be called into question.3 The CESL cites Article 114 of the Treaty on the Functioning of the European Union (TFEU) as its legal basis." In so doing, it goes against the grain of received wisdom: virtually all the studies on the subject ruled out the use of Article 114 TFEU in favour of Article …

Contract Law, Chee Ho Tham, Pey Woan Lee, Yihan Goh

Research Collection Yong Pung How School Of Law

No abstract provided.

The Future Of Promissory Estoppel In Singapore Law, Tiong Min Yeo

2009 Yong Pung How Professorship of Law Lecture

In the preface to the first Singapore and Malaysian edition of Cheshire, Fifoot, and Furmston’s Law of Contract in 1994, Yong Pung How CJ said: “The Singapore legal system should strive towards indigenous development, preferably by way of a rationalization of its basic laws in the first instance.”1 Singapore law has come a long way since then. In recent years we have seen significant restatements by the Singapore judiciary in diverse areas including contract law, tort law, property law, company law and the conflict of laws. This paper will examine a small but basic topic, promissory estoppel, where there have …

Liability For Work Done Where Contract Is Denied: Contractual And Restitutionary Approaches, Man Yip, Yihan Goh

Research Collection Yong Pung How School Of Law

This paper explores the divide between the law of contract and the law of restitution in dealing with the different situations that arise from one party commencing work prior to the conclusion of a formal contract. It argues that contract and unjust enrichment each have a proper role to play in dealing with such cases. First, it argues against a purely contractarian view that such cases should be exclusively resolved by the law of contract, through an implied collateral contract. Such a technique, applied vigorously, would result in nullifying the concept of “essential terms” and an artificial construction of parties …

Contract Modifications: Reflections On Two Commonwealth Cases, Pey Woan Lee

Research Collection Yong Pung How School Of Law

The common law rule that a promise to perform a pre-existing obligation is no consideration is said to have done the most in giving the doctrine of consideration a bad name. While the English innovation of 'practical benefits' in Williams v Roffey has effectively enervated this rule, general discontentment with the conceptual difficulties residing in this approach has often led to calls for the abolition of consideration in the context of contract modifications. This article examines two Commonwealth cases that took this step and warns against an overly optimistic view of such a development. It argues, instead, that the post-Williams …

Contractual And Procedural Effects Of Non-Exclusive Jurisdiction Agreements, Darius Chan

Research Collection Yong Pung How School Of Law

In Orchard Capital I Ltd v Ravindra Kumar Jhunjhunwala, a respondent’s attempt to stay Singaporean proceedings on forum non conveniens grounds in favour of a non-exclusive jurisdiction (Hong Kong) was denied. In doing so, the Singapore Court of Appeal set out important principles concerning the legal effects of a non-exclusive jurisdiction agreement. This note makes a comparative analysis of the decision with English case law. It will be seen that the decision has taken a bold and firm step in a direction where English case law had previously tiptoed but still not fully embarked.

The Unimportance Of Being "Electronic" Or Popular Misconceptions About “Internet Contracting”, Eliza Mik

Research Collection Yong Pung How School Of Law

Existing e-commerce literature abounds with misconceptions regarding both technology and contract law. Long-standing legal concepts are adorned with “e-” or “cyber-” to appear more exciting. The traditional contractual regime issupplanted with new principles instead of being supplemented with technological considerations. It is one thing, to include technology in legal analyses, it is another to create separate, technology-specific categories. Separate categories justify the departure from traditional principles. Most, if not all, alleged “challenges” created by new communication scenarios fit within the existing legal framework, technological complexity and novelty of the Internet notwithstanding. Most “challenges” are also unrelated to the fact that …