Sharon Global Solutions v LG International: Economic Duress & Contract Consideration

In a case before the High Court of Singapore on 20 June 2001, Sharon Global Solutions Pte Ltd sued LG International (Singapore) Pte Ltd for outstanding payments related to a contract for the sale of Hot Briquette Iron (HBI). LG International counterclaimed, alleging economic duress and lack of consideration for an agreement to share increased freight costs. The court ruled in favor of Sharon Global Solutions, finding no economic duress and sufficient consideration, dismissing LG International's counterclaim.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court case involving Sharon Global Solutions and LG International concerning economic duress and consideration in contract law. Judgment for Plaintiff.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Sharon Global Solutions Pte LtdPlaintiffCorporationJudgment for PlaintiffWonP Suppiah, K Elangovan
LG International (Singapore) Pte LtdDefendantCorporationCounterclaim DismissedLostVinodh Coomaraswamy, Chua Sui Tong

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
P SuppiahP Suppiah & Co
K ElangovanP Suppiah & Co
Vinodh CoomaraswamyShook Lin & Bok
Chua Sui TongShook Lin & Bok

4. Facts

  1. Sharon Global Solutions agreed to sell HBI to LG International, who would then sell it to POSCO.
  2. The agreement stipulated a shipment deadline of August 15, 2000.
  3. Sharon Global Solutions underestimated freight costs and could not secure a vessel at the initially anticipated price.
  4. LG International was concerned about its relationship with POSCO if the deal fell through.
  5. Sharon Global Solutions demanded that LG International share the increased freight costs, threatening to default on the contract.
  6. LG International agreed to pay additional freight costs to ensure the HBI was delivered to POSCO on time.
  7. LG International refused to make the second payment, leading to the lawsuit.

5. Formal Citations

  1. Sharon Global Solutions Pte Ltd v LG International (Singapore) Pte Ltd, Suit 815/2000, [2001] SGHC 139

6. Timeline

DateEvent
Agreement signed between Sharon Global Solutions and LG International
Agreement signed between LG International and POSCO
Parties met to find a solution to increased freight costs
Agreement signed regarding LG International paying additional freight costs
Latest date for shipment of HBI
Agreement reached regarding LG International paying additional freight costs
Judgment issued

7. Legal Issues

  1. Economic Duress
    • Outcome: The court found that the plaintiff's declaration was a legitimate notice of inability to perform, not an illegitimate threat constituting economic duress.
    • Category: Substantive
    • Sub-Issues:
      • Illegitimate threat
      • Coercion
    • Related Cases:
      • [1976] 1 Lloyd’s Rep. 293
      • [1980] A.C. 614
      • [1984] I.C.R. 419
  2. Consideration
    • Outcome: The court held that the plaintiff's promise to perform its existing contractual obligations conferred a practical benefit on the defendant, constituting sufficient consideration.
    • Category: Substantive
    • Sub-Issues:
      • Performance of existing duty
      • Practical benefit
    • Related Cases:
      • [1990] 1 All ER 512

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Steel
  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Occidental Worldwide Investment Corpn v. Skibs A/S AvantiUnknownYes[1976] 1 Lloyd’s Rep. 293England and WalesCited regarding the requirements for a finding of economic duress.
Pao On v. Lau Liu LongPrivy CouncilYes[1980] A.C. 614England and WalesCited regarding the requirements for a finding of economic duress.
B. & S. Contracts & Design Ltd v. Victor Green Publications LtdCourt of AppealYes[1984] I.C.R. 419England and WalesCited to emphasize that not every unwilling agreement to a contract variation constitutes duress.
Williams v Roffey Bros and Nicholls (Contractors) LtdCourt of AppealYes[1990] 1 All ER 512England and WalesCited and applied for the principle that a promise to perform an existing contractual duty can constitute good consideration if it confers a practical benefit on the other party.
Ward v ByhamUnknownYes[1956] 2 All ER 318England and WalesCited regarding consideration.
Williams v WilliamsUnknownYes[1957] 1 All ER 305England and WalesCited regarding consideration.
Pao On v Lau YiuPrivy CouncilYes[1979] 3 All ER 65England and WalesCited regarding consideration.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Hot Briquette Iron
  • HBI
  • Economic duress
  • Consideration
  • Performance bond
  • Freight costs
  • Vessel charter
  • POSCO
  • Illegitimate threat
  • Legitimate notice

15.2 Keywords

  • contract
  • economic duress
  • consideration
  • HBI
  • freight
  • POSCO
  • Sharon Global Solutions
  • LG International

16. Subjects

  • Contract Law
  • Commercial Law
  • International Trade

17. Areas of Law

  • Contract Law
  • Economic Duress
  • Consideration