Contract Law

• Main Authors: LEE, Pey Woan, KOH, Pearlie, THAM, Chee Ho
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Contracts
• Online Access: https://ink.library.smu.edu.sg/sol_research/304; https://ink.library.smu.edu.sg/context/sol_research/article/1303/viewcontent/2006_7_SALAnnRev_171_Contract.pdf
• Institution: Singapore Management University

The issue of contract formation arose in the unusual context of civil procedure in Wellmix Organics (International) Pte Ltd v Lau Yu Man [2006] 2 SLR 117 (see also para 10.60 on “Mistake”). The plaintiff in this case unsuccessfully sought to enforce a consent unless order against the defendant. Andrew Phang Boon Leong J (as he then was) emphasised that, keeping in view its very drastic consequence of depriving a party of his cause of action, such an order will only be established where the terms of the agreement are clear and unambiguous. It was clear on the facts that the parties had not adequately expressed any intention to enter into such an agreement, and even if there was a possibility of an agreement, such agreement must fail because the parties were not in fact ad idem. Significantly, Phang J also laid stress on the critical importance of assessing the evidence objectively in ascertaining the parties’ intention.