Merchant Industries v X-Media: Breach of Contract Claim over Website Development
Merchant Industries (S) Pte Ltd, a food product manufacturer, sued X-Media Communications Pte Ltd, an internet access provider and software consultant, in the High Court of Singapore, alleging breach of contract. The dispute arose from a failed website development project, Mixtown.com. Merchant Industries claimed that X-Media failed to deliver a functional website as agreed, leading to a Settlement Agreement that was also allegedly breached. Tay Yong Kwang JC dismissed Merchant Industries' claim, finding that X-Media had not breached the Settlement Agreement and that Merchant Industries had wrongfully repudiated it.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Claim Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Merchant Industries sued X-Media for breach of contract related to a website development project. The court dismissed Merchant Industries' claim, finding no breach.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Merchant Industries (S) Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| X-Media Communications Pte Ltd | Defendant | Corporation | Claim Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tay Yong Kwang | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Philip Ling | Wong Tan & Molly Lim |
| Francis Ow | SM Ow & Co |
| Jeannette Chong | SM Ow & Co |
4. Facts
- Merchant Industries engaged X-Media to develop a website called Mixtown.com for electronic commerce.
- The website launch was delayed, leading to a Settlement Agreement between the parties.
- The Settlement Agreement included the provision of computer hardware by X-Media to Merchant Industries.
- X-Media delivered an IBM Netfinity 3500 server, which Merchant Industries rejected.
- Merchant Industries claimed the server did not meet the agreed specifications, particularly lacking 'hot swap capability'.
- X-Media argued the server met the specifications in the Settlement Agreement and the rejection was wrongful.
- The Settlement Agreement did not explicitly mention 'hot swap capability'.
5. Formal Citations
- Merchant Industries (S) Pte Ltd v X-Media Communications Pte Ltd, Suit 274/2001, [2001] SGHC 338
6. Timeline
| Date | Event |
|---|---|
| Plaintiffs engaged the Defendants to design, create, develop, install, test, commission and host a web site | |
| Plaintiffs paid a deposit of $13,287.00 to the Defendants | |
| Proposed launch date of the website | |
| Electronic commerce was to commence | |
| The website was still not operational | |
| Parties entered into a Settlement Agreement | |
| Defendants delivered an IBM Netfinity 3500 M20 server | |
| Defendants solicitors purported to discharge themselves from total performance of the Settlement Agreement | |
| Plaintiffs accepted the Defendants repudiation | |
| Statement of Claim dated | |
| Decision Date |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant did not breach the settlement agreement and the plaintiff wrongfully repudiated the agreement.
- Category: Substantive
- Sub-Issues:
- Failure to provide computer hardware and software as agreed
- Repudiation of settlement agreement
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Information Technology
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| Order 22A of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Evidence Act | Singapore |
| Supply of Goods Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Settlement Agreement
- Website Development
- Electronic Commerce
- Hot Swap Capability
- Server Specifications
- Mixtown.com
- Repudiation
15.2 Keywords
- breach of contract
- website development
- settlement agreement
- server specifications
- electronic commerce
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 70 |
| Settlement Agreement | 65 |
| Summary Judgement | 30 |
| Website Development | 25 |
| Estoppel | 20 |
| Mistake | 10 |
16. Subjects
- Contract Dispute
- Website Development Agreement