(a) Discharge of a
Contract Introduction
Whereas most of its neighbors have codified the law of Contracts, Singapore
has taken the path of common law principles through the Application of
English Law Act (1993).1 Therefore, the jurisprudence concerning contract
formation, discharge, and remedies is guided by common law principles and
landmark Court decisions (judicial precedents) in the country and other
leading common law jurisdictions such as the UK.
Common law recognizes various ways in which a contract may come to an
end (discharge). These are discharge by; mutual agreement (mostly in the
form of novation), impossibility (frustration), the lapse of time, operation of
law, performance, breach, and remission.2
Mutual agreement is where parties mutually agree to terminate the
contract. Many factors, among them novation, may occasion this. Novation
occurs where the existing contractual terms are replaced by new ones.3
Frustration discharges a contract where factors unforeseen and outside the
control of the parties occur, which make it impossible for the parties to
perform their contractual obligations. On the other hand, a lapse of time is
specific to contracts that have time clauses, which upon expiration, render
the contract discharged. Although uncommon, remission occurs where, for a
contract based on a promise, the promisee waives or remits the
performance of the specific terms of the promise.4
Discharge by performance occurs when each party fulfills all its contractual
obligations to the other party, as discussed in Fong Yoke San vs. Chan Lee Pa.5
When parties enter into contracts; this is usually the anticipated outcome.
However, more times than one would like, the contract is not fully
performed.6
1 Jerrold Soh Tsin Howe, Lim How Khang, and Ian Ernst Chai, 'Legal Area Classification: A Comparative Study of
Text Classifiers on Singapore Supreme Court Judgments' [2019] arXiv preprint arXiv:1904.06470.
2 Zhong Xing Tan, Carter’s Breach of Contract (HeinOnline
2019). 3 ibid.
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, 4 ibid.
5 Fong Yoke San vs. Chan Lee Pa [2003] 1 SLR 739
6 JW Carter, Wayne Courtney, and Gregory Tolhurst, 'An Assimilated Approach to Discharge for Breach of
Contract by Delay' (2017) 76 Cambridge LJ 63.
This study source was downloaded by 100000856941565 from CourseHero.com on 11-28-2022 15:35:03 GMT -06:00
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Contract Introduction
Whereas most of its neighbors have codified the law of Contracts, Singapore
has taken the path of common law principles through the Application of
English Law Act (1993).1 Therefore, the jurisprudence concerning contract
formation, discharge, and remedies is guided by common law principles and
landmark Court decisions (judicial precedents) in the country and other
leading common law jurisdictions such as the UK.
Common law recognizes various ways in which a contract may come to an
end (discharge). These are discharge by; mutual agreement (mostly in the
form of novation), impossibility (frustration), the lapse of time, operation of
law, performance, breach, and remission.2
Mutual agreement is where parties mutually agree to terminate the
contract. Many factors, among them novation, may occasion this. Novation
occurs where the existing contractual terms are replaced by new ones.3
Frustration discharges a contract where factors unforeseen and outside the
control of the parties occur, which make it impossible for the parties to
perform their contractual obligations. On the other hand, a lapse of time is
specific to contracts that have time clauses, which upon expiration, render
the contract discharged. Although uncommon, remission occurs where, for a
contract based on a promise, the promisee waives or remits the
performance of the specific terms of the promise.4
Discharge by performance occurs when each party fulfills all its contractual
obligations to the other party, as discussed in Fong Yoke San vs. Chan Lee Pa.5
When parties enter into contracts; this is usually the anticipated outcome.
However, more times than one would like, the contract is not fully
performed.6
1 Jerrold Soh Tsin Howe, Lim How Khang, and Ian Ernst Chai, 'Legal Area Classification: A Comparative Study of
Text Classifiers on Singapore Supreme Court Judgments' [2019] arXiv preprint arXiv:1904.06470.
2 Zhong Xing Tan, Carter’s Breach of Contract (HeinOnline
2019). 3 ibid.
This study source was downloaded by 100000856941565 from CourseHero.com on 11-28-2022 15:35:03 GMT -06:00
https://www.coursehero.com/file/72357899/Business-Lawediteddocx/
, 4 ibid.
5 Fong Yoke San vs. Chan Lee Pa [2003] 1 SLR 739
6 JW Carter, Wayne Courtney, and Gregory Tolhurst, 'An Assimilated Approach to Discharge for Breach of
Contract by Delay' (2017) 76 Cambridge LJ 63.
This study source was downloaded by 100000856941565 from CourseHero.com on 11-28-2022 15:35:03 GMT -06:00
https://www.coursehero.com/file/72357899/Business-Lawediteddocx/
