Nam Kee Asphalt v Chew Eu Hock: Contract Dispute over Supply of Aggregates and Asphalt Premix
Nam Kee Asphalt Pte Ltd sued Chew Eu Hock Construction Co Pte Ltd in the High Court of Singapore on March 20, 2000, for breach of two supply contracts. Nam Kee claimed Chew Eu Hock failed to purchase the agreed minimum quantities of graded aggregates and asphalt premix. The court dismissed Nam Kee's action, finding that the contracts did not obligate Chew Eu Hock to purchase the estimated quantities or exclusively source from Nam Kee.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiffs' action dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Nam Kee Asphalt sued Chew Eu Hock for breach of contract regarding the supply of aggregates and asphalt premix. The court dismissed the action, finding no obligation to purchase minimum quantities.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Nam Kee Asphalt Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Chew Eu Hock Construction Co Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | Lee Chin Seon of C S Lee |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Leow Tiat Hong | T H Leow & Co |
| Lee Chin Seon | C S Lee |
4. Facts
- Nam Kee Asphalt and Chew Eu Hock Construction entered into two contracts for the supply of graded aggregates and asphalt premix.
- The contracts specified estimated quantities of 40,000 tonnes of aggregates and 60,000/8,000 tonnes of asphalt premix.
- Chew Eu Hock only purchased a fraction of the estimated quantities.
- Nam Kee Asphalt claimed Chew Eu Hock was obligated to purchase the full estimated quantities.
- The contracts stated payment would be made on the actual quantity delivered.
- The contracts did not contain explicit minimum quantity or exclusivity clauses.
5. Formal Citations
- Nam Kee Asphalt Pte Ltd v Chew Eu Hock Construction Co Pte Ltd, Suit 803/1999, [2000] SGHC 45
6. Timeline
| Date | Event |
|---|---|
| Aggregates Contract signed | |
| Premix Contract signed | |
| Acceptances dated | |
| Suit filed | |
| Plaintiffs appealed | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that there was no breach of contract because the contracts did not contain a minimum quantity clause or an exclusivity clause.
- Category: Substantive
- Sub-Issues:
- Minimum quantity clause
- Exclusivity clause
- Admissibility of Parol Evidence
- Outcome: The court considered the admissibility of parol evidence but ultimately did not rely on it in its decision.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
- Loss of Profits
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Contracts
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Moorcock | N/A | Yes | The Moorcock | N/A | Cited for the principle of implying terms necessary to give business efficacy to a contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Graded aggregates
- Asphalt premix
- Minimum quantity clause
- Exclusivity clause
- Estimated quantity
- MRT contract
- Parol evidence
15.2 Keywords
- contract
- aggregates
- asphalt
- premix
- construction
- supply
- estimated quantity
- minimum quantity
- exclusivity
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contracts | 80 |
| Contract Law | 80 |
| Breach of Contract | 75 |
| Evidence | 60 |
| Building and Construction Contracts | 40 |
16. Subjects
- Contract Law
- Construction Law
- Supply Agreements