S & E Tech Pte Ltd v Western Electric Pacific Ltd: Withdrawal of Offer to Settle Due to Unilateral Mistake

In S & E Tech Pte Ltd v Western Electric Pacific Ltd, the Singapore High Court, presided over by Justice Woo Bih Li, addressed the issue of withdrawing an offer to settle due to a unilateral mistake. Western Electric's solicitors mistakenly offered a settlement in Singapore currency instead of US currency. Upon realizing the error, they immediately informed S & E Tech's solicitors before the acceptance of the offer. S & E Tech proceeded to accept the offer. The court dismissed S & E Tech's appeal, holding that the acceptance of the offer was invalid due to S & E Tech's knowledge of the unilateral mistake, despite the rules governing the withdrawal of offers to settle.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addressed the withdrawal of an offer to settle due to a unilateral mistake, ruling that acceptance was invalid when the offeree knew of the mistake.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
S & E Tech Pte LtdAppellantCorporationAppeal dismissedLost
Western Electric Pacific LtdRespondentCorporationAppeal dismissedWon
Western Electric Asia Pte LtdRespondentCorporationAppeal dismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

Counsel NameOrganization
Kelvin TanDrew and Napier LLC
Jeremy YapDrew and Napier LLC
Lee Eng BengRajah and Tann
Corrinne ChiaRajah and Tann

4. Facts

  1. Western Electric's solicitors served an offer to settle on S&E Tech's solicitors.
  2. The offer to settle contained an error; the sum was stated in Singapore currency instead of US currency.
  3. Western Electric's officer realized the error and informed their solicitors.
  4. Western Electric's solicitors informed S&E Tech's solicitors of the mistake before acceptance.
  5. S&E Tech's solicitors sent an acceptance of the offer to settle.
  6. Western Electric applied to withdraw the offer to settle.
  7. The assistant registrar allowed the application to withdraw the offer.

5. Formal Citations

  1. S & E Tech Pte Ltd v Western Electric Pacific Ltd and Another, Suit 972/2004, 169/2005, 170/2005, 673/2005, 684/2005, RA 370/2005, [2006] SGHC 10

6. Timeline

DateEvent
Offer to settle served by Rajah & Tann on Drew & Napier
Error in offer to settle realized; Rajah & Tann informed Drew & Napier of mistake and application to withdraw offer
Application to withdraw offer to settle filed
Drew & Napier sent Rajah & Tann acceptance of offer to settle
Application to withdraw offer allowed by assistant registrar
Appeal dismissed

7. Legal Issues

  1. Withdrawal of Offer to Settle
    • Outcome: The court held that it had no power under O 22A r 3(2) to allow the withdrawal of an offer to settle before the expiry of the minimum period, but the acceptance of the offer was invalid due to the offeree's knowledge of the unilateral mistake.
    • Category: Procedural
    • Sub-Issues:
      • Mistake in offer
      • Communication of mistake before acceptance
  2. Validity of Acceptance
    • Outcome: The court declared that there was no valid settlement arising from S&E’s acceptance of the OTS because S&E knew of the mistake before accepting.
    • Category: Substantive
    • Sub-Issues:
      • Unilateral mistake
      • Knowledge of mistake by offeree

8. Remedies Sought

  1. Enforcement of Settlement Agreement

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Draper v SissonN/AYesDraper v Sisson 1991 ACWSJ 483881CanadaApplied the doctrine of mistake to the Canadian equivalent of the Singapore rules on offers to settle.
Alberta Ltd v Royal Trust Corp of CanadaN/AYesAlberta Ltd v Royal Trust Corp of Canada 1995 ACWSJ 635263CanadaApplied the doctrine of mistake to the Canadian equivalent of the Singapore rules on offers to settle.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
O 22A r 3(1) Rules of Court (Cap 322, R 5, 2004 Rev Ed)Singapore
O 22A r 3(2) Rules of Court (Cap 322, R 5, 2004 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Offer to settle
  • Withdrawal of offer
  • Unilateral mistake
  • Acceptance of offer
  • Rules of Court
  • Minimum period
  • Settlement agreement

15.2 Keywords

  • offer to settle
  • withdrawal
  • mistake
  • contract
  • civil procedure

17. Areas of Law

Area NameRelevance Score
Offer to Settle95
Civil Procedure90
Mistake70
Contract Law60

16. Subjects

  • Civil Procedure
  • Contract Law