1.

Breach of Contract in Singapore Law

8.5.9 The terms of a contract may be classified into conditions, warranties or intermediate (or
innominate) terms. Proper classification is important as it determines whether the contract may
be discharged or terminated for breach

When a party to a contract unlawfully fails to perform his or her contractual obligations, a
breach of contract will have occurred. Since performance of contractual obligations must be
precise, any derogation from full and precise performance amounts to a breach.28

A breach of contract arises when a party to a contract:

1. expressly or implicitly refuses to perform in accordance with the terms of the contract;
2. incapacitates itself such that it is no longer possible for it to perform in accordance with the
terms of the contract; or
3. fails to perform in accordance with the terms of the contract at the time when contractual
performance is due, whether by not performing at all or by performing defectively.

The parties can agree to release each other from the obligations of the contract without any
liability through:

1. a subsequent contract for mutual release of outstanding obligations; and

2. a force majeure clause that contractually provides for non-performance following from
certain events to be excused so as not to amount to a breach

Another way the parties can be released from a contract without liability is through the doctrine
of frustration; and/or

When a mistake enter into a contract under a misapprehension of the basis or a critical aspect
of the transaction

2. (i) the contract between Benji and EHPL was discharged;

A discharge of contract happens because Benji fails to perform his or her contractual
obligations, a breach of contract will have occurred. Since performance of contractual
obligations must be precise, any derogation from full and precise performance amounts to a
breach.

(II) EHPLcould recover any money from Benji

To recover anything, regardless of whether you are seeking expectation damages or reliance
damages, you will need to file a claim and successfully prove that you have actually suffered
substantial loss as a result of the other party’s breach of contract.

Further, proving wasted costs for reliance damages will require the production of evidence. Such
evidence can include receipts of the costs you incurred in reliance on the other party’s promises.
However, these costs are not recoverable if you had just made a bad bargain.