Uncharted Business v Asiasoft Online: Dispute over Termination of Exclusive E-Pin Distribution Agreement

Uncharted Business Pte Ltd sued Asiasoft Online Pte Ltd in the High Court of Singapore, before Lee Seiu Kin J, on 21 August 2009, for breach of contract. The dispute arose from Asiasoft's termination of Uncharted Business's exclusive e-Pin distribution agreement. The court dismissed Uncharted Business's claim, finding that the parties had mutually agreed to terminate the agreement.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's case dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Uncharted Business sued Asiasoft Online for breach of contract after Asiasoft terminated their e-Pin distribution agreement. The court dismissed the claim, finding mutual consent to terminate.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Uncharted Business Pte LtdPlaintiffCorporationClaim DismissedLostLionel Tan I Kwok, Lye Yi Xiang
Asiasoft Online Pte LtdDefendantCorporationJudgment for DefendantWonCheong Yuen Hee, Yeh Siang Hui

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Lionel Tan I KwokRajah & Tann LLP
Lye Yi XiangRajah & Tann LLP
Cheong Yuen HeeY H Cheong
Yeh Siang HuiJ S Yeh & Co

4. Facts

  1. Uncharted Business was appointed as the exclusive e-Pin distributor for Asiasoft Online's products.
  2. The appointment was for a period of 36 months, starting 1 September 2005.
  3. Asiasoft Online issued a Termination Letter on 26 April 2006, terminating the appointment effective 1 July 2006.
  4. Uncharted Business claimed that Asiasoft Online had no right to unilaterally terminate the agreement.
  5. Asiasoft Online argued that Uncharted Business had agreed to the termination.
  6. Addison and Stanley continued to work for Asiasoft Online for almost a year after the termination.
  7. Uncharted Business filed a claim for breach of contract eight months after Addison and Stanley resigned.

5. Formal Citations

  1. Uncharted Business Pte Ltd v Asiasoft Online Pte Ltd, Suit 42/2008, [2009] SGHC 188

6. Timeline

DateEvent
Memorandum of Understanding signed
Uncharted Business ceased to be authorized business operator of Gunbound
Termination Letter issued
Termination of e-Pin distributorship took effect
Addison resigned as CEO of Asiasoft Online
Stanley resigned as CFO of Asiasoft Online
Letter of demand sent by plaintiff's solicitors
Judgment issued

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court held that there was no breach of contract because the parties had mutually agreed to terminate the contract.
    • Category: Substantive
  2. Termination of Contract
    • Outcome: The court found that the termination of the contract was by mutual consent.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Internet Gaming

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Chitty on ContractsN/AYesChitty on Contracts (Sweet & Maxwell, 30th Ed 2008) vol 1 at paras 22-025–22-026N/ACited for the principle of mutual consent to terminate an agreement.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • e-Pin distributor
  • Termination Letter
  • Memorandum of Understanding
  • Mutual agreement
  • Net revenue
  • Related-party transaction

15.2 Keywords

  • contract
  • termination
  • e-Pin
  • distribution
  • gaming
  • singapore

16. Subjects

  • Contract Dispute
  • Termination of Contract

17. Areas of Law

  • Contract Law