Triangle Auto v Zheng Zi Construction: Forfeiture of Deposit & Damages for Breach of Contract
Triangle Auto Pte Ltd, a motor vehicle dealer, sued Zheng Zi Construction Pte Ltd in the High Court of Singapore, before G P Selvam J, on 10 November 2000, for breach of contract after Zheng Zi cancelled their order for a vehicle. Triangle Auto sought damages beyond the forfeited deposit. The court dismissed the defendant's appeal and allowed the plaintiff's appeal, affirming the plaintiff's right to present their case on all heads of damage.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants' appeal dismissed; plaintiffs' appeal allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Triangle Auto sues Zheng Zi Construction for breach of contract after Zheng Zi cancelled a car order. The court examines the nature of deposits and damages.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Triangle Auto Pte Ltd | Plaintiff, Appellant | Corporation | Appeal Allowed | Won | |
| Zheng Zi Construction Pte Ltd | Defendant, Respondent | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| G P Selvam | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Muthu Kumaran | WT Woon & Co |
| Christopher Yap | Christopher Yap & Co |
4. Facts
- Triangle Auto agreed to sell a motor vehicle to Zheng Zi Construction for $73,492.
- The agreement included a deposit of $3,000.
- Zheng Zi Construction cancelled the order due to a fall in COE prices.
- Triangle Auto accepted the repudiation and sued for additional damages.
- The District Judge limited the assessment of damages, excluding certain claims.
- Both parties appealed the District Judge's decision.
5. Formal Citations
- Triangle Auto Pte Ltd v Zheng Zi Construction Pte Ltd, DC Suit 521/2000/p, [2000] SGHC 229
6. Timeline
| Date | Event |
|---|---|
| Agreement made for the purchase of a motor vehicle | |
| Defendants repudiated the contract | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the contract by cancelling the order.
- Category: Substantive
- Sub-Issues:
- Repudiation of contract
- Cancellation of order
- Related Cases:
- [2000] SGHC 229
- Damages
- Outcome: The court allowed the plaintiff to present their case on all heads of damage.
- Category: Substantive
- Sub-Issues:
- Assessment of damages
- Exclusion of claims from assessment
- Forfeiture of Deposit
- Outcome: The court held that the deposit was non-refundable earnest money.
- Category: Substantive
- Related Cases:
- [1924] AC 980
- [1972] 1 MLJ 89
- [1993] AC 573
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Automotive
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd | N/A | Yes | [1915] AC 79 | England and Wales | Cited for the test for penalty clauses. |
| Mayson v Clouet | Privy Council | Yes | [1924] AC 980 | Singapore | Cited as a landmark case on the law of deposits and forfeiture in sale and purchase contracts. |
| Re Parnell, ex p Barrell | N/A | Yes | [1875] 10 Ch App 512 | England and Wales | Cited in relation to the forfeiture of deposits. |
| Linggi Plantations Ltd v Jagatheesan | Privy Council | Yes | [1972] 1 MLJ 89 | Malaysia | Cited as a key case establishing the principles of law relating to deposits and the right to claim additional damages. |
| Workers Trust & Merchant Bank Ltd v Dojap Investments Ltd | Privy Council | Yes | [1993] AC 573 | Jamaica | Cited to support the principle that a deposit must be reasonable as earnest money. |
| Stockloser v Johnson | N/A | Yes | [1954] 1 QB 476 | England and Wales | Cited for the application of deposit principles to the sale of goods. |
| The Blankenstein; Damon Compania Naviera v Hapag-Lloyd International SA | N/A | Yes | [1985] 1 All ER 475 | England and Wales | Cited for the application of deposit principles to the sale of goods. |
| The Blankenstein; Damon Compania Naviera v Hapag-Lloyd International SA | N/A | Yes | [1985] 1 Lloyd`s Rep 93 | England and Wales | Cited for the application of deposit principles to the sale of goods. |
| The Blankenstein; Damon Compania Naviera v Hapag-Lloyd International SA | N/A | Yes | [1985] 1 WLR 435 | England and Wales | Cited for the application of deposit principles to the sale of goods. |
| Cellulose Acetate Silk Co Ltd v Widnes Foundry(1925) Ltd | N/A | Yes | [1933] AC 20 | England and Wales | Cited regarding liquidated damages. |
| Suisse Alantique Société D`Armement Maritime SA v Rotterdamsche Kolen Centrale | N/A | Yes | [1967] 1 AC 361 | England and Wales | Cited regarding liquidated damages. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Deposit
- Forfeiture
- Repudiation
- Damages
- Certificate of Entitlement
- Earnest Money
- Liquidated Damages
15.2 Keywords
- breach of contract
- motor vehicle
- deposit
- damages
- singapore
- high court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 90 |
| Damages | 70 |
| Remedies | 65 |
| Civil Procedure | 60 |
16. Subjects
- Contract Law
- Sale of Goods
- Civil Procedure