Li Hwee Building Construction Pte Ltd v Advanced Construction & Engineering Pte Ltd and Another

Li Hwee Building Construction Pte Ltd v Advanced Construction & Engineering Pte Ltd and Another

The court held PB12, signed by the defendants, constituted a binding subcontract for the entire project; however the parties' subsequent conduct (communications, appointment of Wee Ngiak, change of supplier documentation, plaintiffs' acquiescence and cessation of ordering) demonstrated a common intention to abandon/abrogate the subcontract by 14 August 2001, so plaintiffs' claim for loss of profits failed; limited recovery permitted for assessed progress payment no.3 and costs allocated two-thirds against the defendants.

Citation
[2002] SGHC 287
Parties
Plaintiff: Li Hwee Building Construction Pte Ltd; Defendant: Advanced Construction & Engineering Pte Ltd; Defendant: Chia Joo Juan
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
3 December 2002
Case Number
Suit 1500/2001/W, Suit 441/2002/J
Procedural Posture
Civil Contract (wrongful Repudiation of Sub Contract) / Judgment (high Court)
Outcome
Sub-contract for entire project existed but was mutually terminated/abrogated by 14 August 2001; plaintiffs' claim for loss of profits dismissed; assessment ordered for progress payment claim no.3; Suit No.441/2002 against Chia dismissed.
Legal Topics
Formation of Contract, Parol Evidence Rule, Mutual Termination/abrogation, Repudiation, Estoppel, Assessment of Progress Payments
Source Language
English
Contract Law Evidence Commercial Law Formation of Contract Parol Evidence Rule Mutual Termination/abrogation Repudiation Estoppel +1 more

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Parties

Li Hwee Building Construction Pte Ltd

Plaintiff

Advanced Construction & Engineering Pte Ltd

Defendant

Chia Joo Juan

Defendant

Procedural Posture

Civil Contract (wrongful Repudiation of Sub Contract) / Judgment (high Court)

Legal Issues

  1. 1 Whether a concluded subcontract existed for the entire Woodlands Project
  2. 2 Whether the subcontract was thereafter mutually terminated or abrogated by conduct
  3. 3 Whether extrinsic evidence could displace the written document (parol evidence)

Ratio Decidendi

The court held PB12, signed by the defendants, constituted a binding subcontract for the entire project; however the parties' subsequent conduct (communications, appointment of Wee Ngiak, change of supplier documentation, plaintiffs' acquiescence and cessation of ordering) demonstrated a common intention to abandon/abrogate the subcontract by 14 August 2001, so plaintiffs' claim for loss of profits failed; limited recovery permitted for assessed progress payment no.3 and costs allocated two-thirds against the defendants.

Court Disposition

Sub-contract for entire project existed but was mutually terminated/abrogated by 14 August 2001; plaintiffs' claim for loss of profits dismissed; assessment ordered for progress payment claim no.3; Suit No.441/2002 against Chia dismissed.

Orders

  • Assessment by the Registrar of amount, if any, due to plaintiffs under progress payment claim no.3
  • Defendants to bear two-thirds of the costs of the action