Ang Ai Tin v Chua Keng Hwee: Breach of Oral Agreements & Settlement Agreement Dispute

In Ang Ai Tin v Chua Keng Hwee, the High Court of Singapore addressed a dispute between Ang Ai Tin, a paediatrician, and Chua Keng Hwee, a car spare parts trader, concerning alleged breaches of oral agreements and a subsequent settlement agreement related to an aesthetic clinic venture. Ang Ai Tin claimed that Chua Keng Hwee breached agreements regarding the investment and use of funds in Aesthetics d Orchard Pte Ltd. The court, presided over by Justice Choo Han Teck, dismissed the claims based on the oral agreements due to issues with the pleadings and the existence of subsequent written agreements. However, the court allowed Ang Ai Tin's claim based on the settlement agreement, finding sufficient consideration for the defendant's promise to pay. The court awarded the plaintiff $668,000.00 and half costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's claim in respect of the two oral agreements is dismissed, but her claim in respect of the settlement agreement for $668,000.00 is allowed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment Reserved

1.5 Jurisdiction

Singapore

1.6 Description

Dispute over breach of oral agreements and a settlement agreement concerning investment in an aesthetic clinic. The court dismissed the claim based on oral agreements but allowed the claim based on the settlement agreement.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ang Ai TinPlaintiffIndividualClaim allowed in partPartial
Chua Keng HweeDefendantIndividualClaim dismissed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Eugene ThuraisingamAllen & Gledhill LLP
Jacqueline Lee Siew HuiAllen & Gledhill LLP
Tang Khin WaiTang Khin Wai & Co

4. Facts

  1. Plaintiff and defendant discussed starting a chain of aesthetic clinics and spas.
  2. Plaintiff paid $1,050,000 towards the capital of Aesthetics d Orchard Pte Ltd.
  3. Plaintiff was to purchase up to 40% of the shares in the Company.
  4. Defendant was to pay $2,400,000 for the remaining 60% shares.
  5. Plaintiff executed a Sale and Purchase Agreement and a Shareholders’ Agreement with Newway.
  6. The Company was eventually wound up in December 2008 by its landlord for arrears in rent.
  7. Defendant promised to pay the Plaintiff a sum of S$800,000 by way of settlement.

5. Formal Citations

  1. Ang Ai Tin v Chua Keng Hwee, Suit 332/2008, [2009] SGHC 85

6. Timeline

DateEvent
First meeting between the plaintiff and defendant to discuss starting a chain of aesthetic clinics and spas.
Second meeting between the plaintiff and defendant.
Plaintiff paid $600,000.
Plaintiff executed the Sale and Purchase Agreement and the Shareholders’ Agreement.
Plaintiff paid $450,000.
Defendant promised to pay the Plaintiff a sum of S$800,000 by 7 April 2008 by way of settlement.
Defendant wrote to the Plaintiff on behalf of AMG, to inform that AMG would purchase 60,000 shares in the Company from the Plaintiff.
Defendant enclosed a cheque for S$182,000 for 18,200 of the Plaintiff’s shares in the Company.
Defendant enclosed another cheque for S$200,000 for 20,000 of the Plaintiff’s shares in the Company.
Defendant paid a further S$280,000 for 28,000 of the Plaintiff’s shares in the Company. The cheque could not be cleared.
Plaintiff’s claim in this action was filed.
The Company was eventually wound up by its landlord for arrears in rent.
Judgment Reserved

7. Legal Issues

  1. Breach of Oral Agreements
    • Outcome: The court dismissed the claim based on the oral agreements.
    • Category: Substantive
  2. Breach of Settlement Agreement
    • Outcome: The court allowed the claim based on the settlement agreement.
    • Category: Substantive
  3. Consideration for Settlement Agreement
    • Outcome: The court found that there was a reasonable cause of action and therefore sufficient consideration for the settlement agreement.
    • Category: Substantive

8. Remedies Sought

  1. Declaration
  2. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Breach of Settlement Agreement

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Healthcare

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

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

  • Aesthetic clinic
  • Oral agreement
  • Settlement agreement
  • Shareholders’ Agreement
  • Consideration
  • Forbearance to sue

15.2 Keywords

  • Contract
  • Settlement
  • Aesthetic Clinic
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Breach of Contract75
Contract Law70
Company Law60
Commercial Disputes50
Corporate Law45
Aesthetic Clinic30

16. Subjects

  • Contract Law
  • Commercial Dispute
  • Settlement Agreement