Fong Yoke San v Chan Lee Pa: Option to Purchase Validity When Not Executed by All Joint Tenants

In Fong Yoke San & Another v Chan Lee Pa, the High Court of Singapore addressed the validity of an option to purchase a property signed by only one of three joint tenants. The plaintiffs, Fong Yoke San and Kwok Sing Cheong, sought a refund of the option fee, arguing the option was incomplete. The court dismissed the claim, holding that the option was binding on the signatory, Chan Lee Pa, who was obligated to procure the other joint tenants' signatures for the sale. The court dismissed the Plaintiffs' claim with costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiffs’ claim was dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court held that an option to purchase signed by one of three joint tenants was valid, obligating the signatory to complete the sale.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Fong Yoke SanPlaintiffIndividualClaim DismissedLostLim Kim Song
Kwok Sing CheongPlaintiffIndividualClaim DismissedLostLim Kim Song
Chan Lee PaDefendantIndividualJudgment for DefendantWonLee Mong Jen

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Lim Kim SongSong Ling & Partners
Lee Mong JenLeong Chua & Wong

4. Facts

  1. The Defendant granted the Plaintiffs an option to purchase a property for $1.15 million.
  2. The option fee was $11,500, and the expiry date was 4pm on 18 September 2002.
  3. A title search revealed that there were three joint tenants of the property, including the Defendant.
  4. The Plaintiffs asserted that the option was incomplete because it was signed by only one of the three joint tenants.
  5. The Defendant's solicitors stated that the other two owners were willing to sign the option.
  6. The Plaintiffs did not exercise the option, and the option fee was forfeited.
  7. The property was eventually sold to another purchaser for $1.11 million.

5. Formal Citations

  1. Fong Yoke San & Another v Chan Lee Pa, OS No 1358 of 2002, [2002] SGHC 292

6. Timeline

DateEvent
Option to Purchase dated granted by the Defendant to the Plaintiffs
Plaintiffs' solicitors asserted the Option was incomplete and demanded the return of the option fee
CLP's solicitors replied that the other two owners were willing to sign the Option
Expiry time and date for the exercise of the Option
Plaintiffs’ claim was dismissed with costs

7. Legal Issues

  1. Validity of Option to Purchase
    • Outcome: The court held that the option was complete and binding on the signatory, obligating him to complete the sale.
    • Category: Substantive
    • Sub-Issues:
      • Incomplete option
      • Unperfected option
    • Related Cases:
      • [1996] 3 SLR 457
      • [1994] 3 SLR 719

8. Remedies Sought

  1. Repayment of option fee

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Real Estate Law
  • Contract Litigation

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mookka Pillai Rajagopal & Ors v Khushvinder Singh ChopraCourt of AppealYes[1996] 3 SLR 457SingaporeCited regarding the principle of an incomplete or unperfected option when not signed by all joint tenants.
Tay Joo Sing v Ku Yu SangCourt of AppealYes[1994] 3 SLR 719SingaporeCited regarding the sale of property by one tenant-in-common on behalf of another.
Malhotra v ChoudhuryEnglish Court of AppealYes[1979] 1 All ER 186England and WalesCited to support the argument that a person with the benefit of an option can sue on it even if the grantor is not the sole owner of the property.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Civil Law Act (Cap 43)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Option to Purchase
  • Joint Tenants
  • Option Fee
  • Incomplete Option
  • Unperfected Option

15.2 Keywords

  • Option to Purchase
  • Joint Tenants
  • Contract Law
  • Real Estate
  • Singapore High Court

16. Subjects

  • Contract Law
  • Real Estate
  • Options to Purchase

17. Areas of Law

  • Contract Law
  • Property Law