HG Metal v Nam Tat: Breach of Contract & Payment Dispute over Steel Sheets
HG Metal Manufacturing Ltd ("HG") sued Nam Tat Hardware Co ("Nam Tat") in the High Court of Singapore, alleging breach of contract for the sale of steel sheets. The contract stipulated payment via letters of credit, but the parties later agreed to alternative payment methods. A dispute arose over the remaining quantity of steel and Nam Tat's sale of a portion to a third party. Justice Woo Bih Li found that Nam Tat breached the contract but awarded only nominal damages of $10 to HG, as HG failed to prove substantial damages. Each party was ordered to bear its own costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
HG Metal sued Nam Tat for breach of contract regarding steel sheets. The court found a breach but awarded nominal damages due to lack of proof.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| HG Metal Manufacturing Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Partial | Leslie Yeo Choon Hsien |
| Nam Tat Hardware Co (a firm) | Defendant | Partnership | Judgment against Defendant | Lost | Gong Chin Nam, Hoon Tai Meng |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Leslie Yeo Choon Hsien | Leslie Yeo and Associates |
| Gong Chin Nam | T M Hoon and Co |
| Hoon Tai Meng | T M Hoon and Co |
4. Facts
- HG and Nam Tat entered into a contract for the sale of steel sheets.
- The contract stipulated payment by letters of credit.
- The parties subsequently agreed on alternative modes of payment.
- Nam Tat sold part of the balance of steel to a third party.
- HG initiated an action claiming damages from Nam Tat for breach of contract.
- HG procured a letter of credit for the balance of 1,785mt.
- Nam Tat did not allow collection of the same.
5. Formal Citations
- HG Metal Manufacturing Ltd v Nam Tat Hardware Co (a firm), Suit 911/2004, [2006] SGHC 37
6. Timeline
| Date | Event |
|---|---|
| Contract signed | |
| Delivery of 2,000mt effected between 9 to 17 September 2004 by self-collection at Nam Tat’s yard | |
| Nam Tat received payment for first collection | |
| Collection for second quantity done between 20 to 28 September 2004 | |
| Nam Tat submitted delivery order with invoice by hand to HG | |
| Due date for payment for second collection | |
| Nam Tat received payment for second collection | |
| HG sent lorries to collect balance, no collection allowed | |
| Nam Tat sold 506.074mt to Master Sales Pte Ltd | |
| Letter of credit issued | |
| HG notified Nam Tat about the issuance of the letter of credit | |
| HG's solicitors sent Nam Tat a demand | |
| Nam Tat's solicitors replied to assert that HG had repudiated the Contract | |
| Mr Kwa said that Nam Tat was still willing to sell the remainder at S$890 per metric tonne to HG with payment to be made by way of letter of credit | |
| Mr Tan’s affidavit filed on 4 February 2005 stated that HG was not prepared to accept the remainder | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that Nam Tat was in breach of contract for failing to allow HG to collect the remaining steel after HG procured a letter of credit.
- Category: Substantive
- Sub-Issues:
- Failure to perform condition precedent
- Improper termination
- Related Cases:
- [1996] AC 800
- Damages
- Outcome: The court found that HG failed to prove its damages and awarded only a nominal sum.
- Category: Substantive
- Termination of Contract
- Outcome: The court found that the contract had not been terminated when the parties agreed on the first collection and that the subsequent arrangements about the first and second collections were variations of the mode of payment only.
- Category: Substantive
- Related Cases:
- [1996] AC 800
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Manufacturing
- Steel Industry
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Vitol SA v Norelf Ltd | N/A | Yes | [1996] AC 800 | N/A | Cited regarding communication or conduct clearly and unequivocally conveying to the repudiating party that the aggrieved party is treating the contract as at an end. |
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
- Letter of credit
- Steel sheets
- Metric tonne
- Delivery order
- Repudiation
- Nominal damages
15.2 Keywords
- Contract
- Breach
- Steel
- Letter of Credit
- Damages
16. Subjects
- Contract Dispute
- Sale of Goods
17. Areas of Law
- Contract Law
- Breach of Contract