Zain Asif Fancy v Soon Chia Chuen: Option to Purchase Dispute & Specific Performance

In Zain Asif Fancy v Soon Chia Chuen, the High Court of Singapore addressed a dispute over the valid exercise of an option to purchase a property. Zain Asif Fancy, the plaintiff, sought specific performance of the option agreement against Soon Chia Chuen, the defendant. The court, presided over by Justice Belinda Ang Saw Ean, dismissed the plaintiff's application, finding that the plaintiff failed to comply with the prescribed terms for exercising the option, specifically regarding the mode of payment. The court held that the plaintiff's attempt to unilaterally alter the payment terms was a material variation of the option, entitling the defendant to forfeit the option fee.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's application dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court dismissed Zain Asif Fancy's application for specific performance, ruling he failed to validly exercise an option to purchase property due to non-compliance with payment terms.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Zain Asif FancyPlaintiffIndividualApplication dismissedLost
Soon Chia Chuen (alias Sun Jiajun)DefendantIndividualApplication dismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
Alvin YeoWong Partnership LLP
Monica ChongWong Partnership LLP
Chan Xiao WeiWong Partnership LLP
Arigen LiangWong Partnership LLP
Lim Biow ChuanDerrick Wong & Lim LLP
P NairDerrick Wong & Lim LLP

4. Facts

  1. Plaintiff paid an option fee of $184,600 for an option to purchase property.
  2. The sale price of the property was $18,460,000.
  3. The option exercise deadline was 4 pm on 2 August 2010.
  4. Plaintiff's solicitors delivered a cheque for $738,400 to defendant's solicitors.
  5. The cheque was made out to the defendant's solicitors, not the defendant.
  6. Plaintiff's solicitors stated the cheque was to be held as stakeholders pending completion.
  7. Defendant's solicitors alleged the plaintiff failed to validly exercise the option.

5. Formal Citations

  1. Zain Asif Fancy v Soon Chia Chuen (alias Sun Jiajun), Originating Summons No 844 of 2010, [2010] SGHC 309

6. Timeline

DateEvent
Option to purchase property granted to plaintiff
Plaintiff's solicitors hand delivered documents to defendant's solicitors
Defendant's solicitors alleged plaintiff failed to validly exercise the option
Plaintiff's application dismissed

7. Legal Issues

  1. Valid Exercise of Option
    • Outcome: The court held that the plaintiff did not validly exercise the option due to non-compliance with the payment terms.
    • Category: Substantive
    • Sub-Issues:
      • Compliance with payment terms
      • Material variation of option terms
    • Related Cases:
      • [1983-1984] SLR(R) 73
      • [1968] 1 WLR 74
  2. Estoppel
    • Outcome: The court rejected the plaintiff's argument that the defendant was estopped from claiming the option was not properly exercised.
    • Category: Substantive

8. Remedies Sought

  1. Declaration of valid exercise of option
  2. Order for specific performance
  3. Order to prevent dealing with property
  4. Damages

9. Cause of Actions

  • Specific Performance

10. Practice Areas

  • Commercial Litigation
  • Real Estate Law

11. Industries

  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Tan Chee Hoe and another v Ram Jethmal PunjabiWee Chong Jin CJYes[1983-1984] SLR(R) 73SingaporeCited for the principle of strict compliance in the exercise of options and the difference between payment to a vendor's solicitors as agents versus as stakeholders.
United Dominions Trust (Commercial) Ltd v Eagle Aircraft Services LtdN/AYes[1968] 1 WLR 74N/ACited for the principle that an option must be accepted in exact compliance with its terms to be turned into a binding contract.

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

  • Option
  • Option Fee
  • Sale Price
  • Stakeholders
  • Specific Performance
  • Exercise of Option
  • Deposit

15.2 Keywords

  • Option to purchase
  • Specific performance
  • Contract law
  • Real estate
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Contract Law90
Real Estate50
Estoppel30

16. Subjects

  • Contract Law
  • Real Estate
  • Civil Litigation