Harris Hakim v Allgreen Properties: Forfeiture Clause & Damages in Property Contract
In Harris Hakim v Allgreen Properties Ltd, the High Court of Singapore addressed a dispute arising from a property sale agreement. Harris Hakim (HH) defaulted on payments to Allgreen Properties Ltd, the developer. Allgreen Properties invoked a clause allowing forfeiture of 20% of the purchase price and sought additional damages. The court dismissed HH's claim, ruling that Allgreen Properties was entitled to both the forfeited amount and additional damages due to HH's breach.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claim dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court held Allgreen Properties could forfeit 20% of the purchase price and claim additional damages from Harris Hakim for breach of contract.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Allgreen Properties Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Harris Hakim | Plaintiff | Individual | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Rajendran | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Benedict Peter | Ramdas & Wong |
| George Pereira | Tan Lee & Choo |
| Serence Chan | Tan Lee & Choo |
4. Facts
- Harris Hakim entered into an agreement to purchase a unit from Allgreen Properties.
- The agreement was in the prescribed Form E of the Housing Developers Rules 1990.
- The purchase price of the unit was $1,165,000.
- Harris Hakim defaulted on installment payments.
- Allgreen Properties invoked clause 5(3) of the agreement to forfeit 20% of the purchase price.
- Allgreen Properties resold the unit at a lower price.
- Allgreen Properties sought to recover additional damages beyond the 20% forfeiture.
5. Formal Citations
- Harris Hakim v Allgreen Properties Ltd, OS 896/2000, [2000] SGHC 271
6. Timeline
| Date | Event |
|---|---|
| Agreement for sale and purchase of property signed. | |
| HH's solicitors requested Allgreen Properties to consider repudiating the agreement. | |
| Allgreen Properties' solicitors replied that their clients were not agreeable to HH's request. | |
| Allgreen Properties invoked clause 5(3) of the agreement. | |
| Allgreen Properties gave notice that the 21-day period had expired and the deposit was forfeited. | |
| Allgreen Properties informed HH of the refund amount after resale of the unit. | |
| Judgment issued. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the plaintiff breached the contract by failing to pay installments.
- Category: Substantive
- Sub-Issues:
- Failure to pay installments
- Repudiation of agreement
- Interpretation of Contractual Clauses
- Outcome: The court interpreted the 'without prejudice' clause as preserving the developer's right to claim damages beyond the forfeited amount.
- Category: Substantive
- Sub-Issues:
- Interpretation of forfeiture clause
- Effect of 'without prejudice' clause
8. Remedies Sought
- Refund of excess amount deducted by the defendant
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Real Estate Law
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Talley & Anor v Wolsey-Neech | N/A | Yes | Talley & Anor v Wolsey-Neech | England | Cited in relation to the interpretation of 'without prejudice' clauses in property sale agreements, but distinguished due to differing context. |
| Wallace Turner v Cole | N/A | Yes | Wallace Turner v Cole | England | Cited in relation to the interpretation of 'without prejudice' clauses in property sale agreements, but distinguished due to differing context. |
| Sakkas & Anor v Donford Ltd | N/A | Yes | Sakkas & Anor v Donford Ltd | England | Cited in relation to the interpretation of 'without prejudice' clauses in property sale agreements, but distinguished due to differing context. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Housing Developers Rules (Cap 130, R 1, 1990 Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Forfeiture Clause
- Without Prejudice
- Housing Developers Rules
- Instalment Payments
- Repudiation
- Liquidated Damages
- Sale and Purchase Agreement
15.2 Keywords
- contract
- property
- forfeiture
- damages
- housing
- developer
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 85 |
| Sale of Land | 80 |
| Property Law | 75 |
| Housing Developers Rules | 70 |
| Conveyance | 60 |
| Liquidated Damages | 50 |
| Statutory Interpretation | 40 |
16. Subjects
- Contract Law
- Property Law
- Real Estate
- Housing Development