Koon Seng Construction v Siem Seng Hing: Contract Formation Dispute over Steel Bar Supply
Koon Seng Construction Pte Ltd sued Siem Seng Hing & Co (Pte) Ltd in the High Court of Singapore, alleging breach of contract for the supply of steel bars. Koon Seng claimed a binding agreement existed based on exchanged letters, while Siem Seng Hing argued there was no concluded contract. Justice MPH Rubin dismissed Koon Seng's claim, finding the quotations ambiguous and the absence of a letter of award fatal to establishing a contract.
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
Dispute over contract formation for steel bar supply. The court found no binding agreement due to ambiguity in quotations and lack of a letter of award.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Koon Seng Construction Pte Ltd | Plaintiff | Corporation | Claim dismissed | Lost | N Sreenivasan |
| Siem Seng Hing & Co (Pte) Ltd | Defendant | Corporation | Claim Dismissed | Won | Anthony Lee Hwee Khiam, Pua Lee Siang |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| MPH Rubin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| N Sreenivasan | Straits Law Practice LLC |
| Anthony Lee Hwee Khiam | Bih Li and Lee |
| Pua Lee Siang | Bih Li and Lee |
4. Facts
- Koon Seng Construction was awarded the main contract for the Singapore Management University City Campus project.
- Koon Seng Construction sent requests for quotations for steel rebars to several companies, including Siem Seng Hing.
- Siem Seng Hing responded with a quotation for the supply of steel rebars.
- Koon Seng Construction sent a letter to Siem Seng Hing confirming the supply of steel bars.
- No letter of award was issued by Koon Seng Construction to Siem Seng Hing.
- Siem Seng Hing subsequently increased the price of steel bars.
- Koon Seng Construction placed an order for steel bars, which Siem Seng Hing refused to accept.
5. Formal Citations
- Koon Seng Construction Pte Ltd v Siem Seng Hing & Co (Pte) Ltd, OS 1365/2000, Suit 268/2004, [2005] SGHC 4
6. Timeline
| Date | Event |
|---|---|
| Main contract awarded to Koon Seng Construction | |
| Siem Seng Hing sent quotation to Koon Seng Construction | |
| Siem Seng Hing amended quoted price | |
| Koon Seng Construction sent letter confirming supply | |
| Siem Seng Hing forwarded mill certificates to Koon Seng Construction | |
| Siem Seng Hing increased the price | |
| Koon Seng Construction placed order for steel bars | |
| Siem Seng Hing refused to accept order | |
| Koon Seng Construction commenced proceedings against Siem Seng Hing | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that no binding contract existed between the parties.
- Category: Substantive
- Sub-Issues:
- Failure to form binding agreement
- Contract Formation
- Outcome: The court found that the exchange of letters did not constitute a binding contract due to ambiguity and lack of a formal letter of award.
- Category: Substantive
- Sub-Issues:
- Offer
- Acceptance
- Intention to create legal relations
8. Remedies Sought
- Damages to be assessed
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 |
|---|---|---|---|---|---|
| Pagnan SpA v Feed Products Ltd | N/A | Yes | [1987] 2 Lloyd’s Rep 601 | N/A | Cited for principles of law in relation to the construction of contracts concluded by way of correspondence. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Steel rebars
- Quotation
- Letter of award
- Contract formation
- Breach of contract
- Final confirmation
- Revision of prices
15.2 Keywords
- Contract
- Construction
- Steel
- Breach
- Singapore
16. Subjects
- Contract Law
- Construction Law
- Supply Agreements
17. Areas of Law
- Contract Law
- Construction Law