Valency International Trading v Alton International Resources: Contract Law & Breach
In Valency International Trading Pte Ltd v Alton International Resources Pte Ltd, the Singapore High Court heard an appeal regarding the striking out of the plaintiff's statement of claim. The plaintiff, Valency International Trading Pte Ltd, contracted to purchase iron ore from the defendant, Alton International Resources Pte Ltd. A dispute arose when the defendant stated they did not have the cargo. The High Court allowed the appeal, finding that the plaintiff's statement of claim could not be said to contain no cause of action until a point of law regarding the application of Fercometal S.A.R.L. v Mediterranean Shipping Co. S.A. was determined by the trial judge.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal allowed with costs in the cause, here and below.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case involving Valency International Trading and Alton International Resources concerning breach of contract in an iron ore purchase agreement.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Valency International Trading Pte Ltd | Plaintiff, Appellant | Corporation | Appeal Allowed | Won | |
| Alton International Resources Pte Ltd | Defendant, Respondent | Corporation | Statement of Claim to be determined at trial | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
4. Facts
- Plaintiff contracted to purchase 65,000 tons of iron ore for US$86 per ton.
- Payment was to be made by an irrevocable letter of credit from Singapore Bank.
- Terms were set out in an email from the defendant dated 22 July 2009.
- Plaintiff accepted the defendant’s offer and confirmed the terms on 27 July 2009.
- The terms provided a laycan period from 1 to 10 August 2009.
- On 28 July 2009 the defendant told the plaintiff that they did not have the cargo.
- On 31 July 2009 the defendant told the plaintiff that there was no contract.
5. Formal Citations
- Valency International Trading Pte Ltd v Alton International Resources Pte Ltd, Suit No 196 of 2010, [2011] SGHC 119
6. Timeline
| Date | Event |
|---|---|
| Defendant sent email setting out terms of iron ore purchase. | |
| Plaintiff accepted defendant’s offer and confirmed the terms. | |
| Defendant told plaintiff that they did not have the cargo. | |
| Defendant told plaintiff that there was no contract. | |
| Suit filed (Suit No 196 of 2010). | |
| Decision Date. |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the plaintiff's claim should not have been struck out because a key legal issue regarding the application of Fercometal needed to be determined at trial.
- Category: Substantive
- Related Cases:
- [1989] 1 AC 788
8. Remedies Sought
- Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Fercometal S.A.R.L. v Mediterranean Shipping Co. S.A. | House of Lords | Yes | [1989] 1 AC 788 | England | Cited regarding the obligations of an innocent party when the other party is in breach of contract. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, 2007 Rev Ed), O 18 r 19 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Iron Ore
- Letter of Credit
- Laycan Period
- Breach of Contract
- Statement of Claim
15.2 Keywords
- contract
- breach
- iron ore
- letter of credit
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Breach of Contract | 90 |
| Contract Law | 80 |
| Summary Judgement | 30 |
16. Subjects
- Contract Dispute
- Sale of Goods