8.13.8 In general, damages are compensatory in nature. Whether damages for breach of contract can be awarded on another basis in the present case remains an open question. 8.9.9 First, it should be noted that unilateral mistaken identity are generally cases where a party`s consent to an agreement is obtained through deception. If A agrees to sell his vehicle to B (who deceived A into believing that B is C), the contract is affected by A`s unilateral error as to B`s true identity, provided that it is clear that B`s identity is essential, i.e. an important factor that triggered the contract. In the relations between A and B, it is not necessary to determine whether such an error leads to the nullity or cancellation of the contract, since A, the party at fault, would in both cases have the right to terminate the contract. However, the distinction becomes critical if B sold the car to T (an innocent third party who acquires the car without notice from B) before A discovers the fraud. If the error results in the nullity of the contract between A and B, A may claim the vehicle from T because B, who has not acquired ownership of the vehicle, has nothing to sell to T. Conversely, where the contract between A and B is merely voidable, B acquired ownership rights in the vehicle which it could subsequently transfer to T. A is therefore not in a position to defend itself from T in the present case. 8.7.13 Although the scope of the Act is broader than that of many other legal techniques for circumventing privacy, it is not universally applicable. Section 7 of the Act lists a number of situations in which the Act does not apply. The following cases are excluded: (a) contracts for bills of exchange, promissory notes or other negotiable instruments; (b) the statutory contract between a company and its members under section 39 of the Companies Act (Cap 50, 2006 Rev Ed); (c) limited liability company agreements within the meaning of the Limited Liability Companies Act (Cap 163A, 2006 Rev Ed); (d) the performance by a third party of a clause in a contract of employment against an employee; and (e) the application by a third party of any provision (other than any exclusion or limitation of liability in favour of the third party) of a contract for the carriage of goods by sea or a contract for the carriage of goods or goods by rail, road or air, if such contract is subject to certain international transport conventions.
8.7.3There is no clear definition of when a person becomes aware of a contract. Typically, a party that is a supplier or beneficiary is aware of the contract. It seems, however, that mere mention in the Treaty is not enough. 8.11.8 If A unduly induces B to enter into a contract with C (generally in favour of A), B may attempt to terminate the contract for undue influence if it can be shown that (a) A acted as C`s representative; or (b) C had knowledge of A.`s actual or factual misconduct. If the transaction is prima facie detrimental to B and C knows the reasons why B might have trusted A (for example, if B is A`s wife), then C would be fixed with an implied notice of undue influence, unless C took reasonable steps, to ensure that B`s consent was obtained independently. This includes, at the very least, explaining the transaction to B in a private conversation and advising him to seek independent legal advice. 8.8.8 In the absence of a lawful excuse, a breach of contract has two main effects. 2. An exception clause must be included in the contract 8.12.1 A contract can be characterized as “unlawful” in various contexts.
For example, there may be a legal prohibition on entering into contracts that would involve the exercise of certain socially undesirable activities. If both parties do everything the contract requires, the law says that performance has taken place. If one or both parties fail to perform, there is a breach of contract in accordance with the law. At this point, the aggrieved party may choose to terminate the contract and turn to the legal system to hold the party that breached the contract liable for the consequences of the breach. A contract is only lawful if the parties entering into it are “competent” or legally competent. In Singapore, a contract with a minor, mental person or drunk person may not be enforceable. It is presumed that these people are not legally capable if they have not understood what they agree on. To see under what circumstances a contract with a potentially incapable person is enforceable, see here (section 6). 8.12.4 At common law, certain areas of public policy prohibit the formation of certain types of contracts. However, if you don`t read the contract you signed, you won`t be able to claim a mistake afterwards, as the law expects you to have read it. Another way in which the parties can be released from a contract without liability is the legal doctrine of impediment.
Frustration relieves the parties of their responsibility when something that was not reasonably foreseeable prevents one or more parties from providing anything. 8.9.2 If A enters into a contract with B because he believes he is buying X, but B actually intends to sell Y to A, no contract is formed between A and B because they have not reached an agreement on the subject matter of the contract. These errors are commonly referred to as “mutual errors”. A settlement concluded on the basis of mutual error (relating to an essential aspect of the contract) is null and void. All employers in Singapore are required to keep detailed employment records of employees covered by the Employment Act in flexible or paper form, including handwritten records. Records must be retained for the last two years for current employees and the last two years (including one year after termination) for former employees. Details on what needs to be registered can be found here. 8.13.16 Damages, whether liquidated or not, are not the only common law remedy. If the breach relates exclusively to an obligation to pay a fixed sum of money, damages are generally not available as a remedy. Instead of damages, the court orders payment of the lump sum due and due. 8.10.11 The parties may enter into contractual terms which exclude or limit their liability for misrepresentation, but section 3 of the Misrepresentation Act requires that such a clause comply with the adequacy test set out in section 11(1) of the Unfair Contract Terms Act (Cap 396, 1994 Rev Ed). This test was reviewed in Section 8.5.15.
8.13.22 Not all contractual obligations are subject to certain performance warrants. Sometimes it is a negative contractual obligation where the breaching party does not keep their promise not to do something. In these circumstances, the aggrieved person may apply for an interim injunction. When starting a business, you enter into several types of contracts – office and equipment leases, shareholders` agreements, agreements with new employees and contracts with customers. So, when deciding where to start your business, you need to determine whether the laws of that country support your agreements and whether the legal system will resolve the disputes you have about them in a fair, timely, and cost-effective manner. Countries where contract law is byzantine and dispute resolution is used are not business-friendly and therefore not the right place for your business.
