Ong Keh Choo v Bernardo: Summary Judgment & Failure of Consideration in Property Sale

In Ong Keh Choo v Paul Huntington Bernardo and Tran Hong Hanh, the High Court of Singapore heard a case regarding a dishonoured cheque related to a property sale. Ong Keh Choo, a real estate agent, sued Bernardo and Tran after Tran countermanded a cheque for $3.16 million intended as part of an option to purchase a flat. The defendants argued failure of consideration and potential fraud. Justice Choo Han Teck allowed the defendants' appeal, granting them unconditional leave to defend, citing the need for a full inquiry into the circumstances surrounding the cheque and the option.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed and the defendants are given unconditional leave to defend.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Real estate dispute over a dishonoured cheque for a flat purchase. The court allowed the defendant unconditional leave to defend due to potential failure of consideration.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ong Keh ChooPlaintiff, Defendant-in-CounterclaimIndividualAppeal allowedLostEdwin Lee Peng Khoon, Rachael Chong Rae-Hua
Paul Huntington BernardoDefendant, Plaintiff-in-CounterclaimIndividualAppeal allowedWonNarayanan Sreenivasan, Claire Tan Kai Ning, Partheban s/o Pandiyan
Tran Hong HanhDefendant, Plaintiff-in-CounterclaimIndividualAppeal allowedWonNarayanan Sreenivasan, Claire Tan Kai Ning, Partheban s/o Pandiyan

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Edwin Lee Peng KhoonEldan Law LLP
Rachael Chong Rae-HuaEldan Law LLP
Narayanan SreenivasanStraits Law Practice LLC
Claire Tan Kai NingStraits Law Practice LLC
Partheban s/o PandiyanStraits Law Practice LLC

4. Facts

  1. Ong, a real estate agent, advertised a flat for sale.
  2. Tran contacted Ong about the flat and arranged a viewing.
  3. Tran wrote a cheque for $3.16m at Ong's request before receiving an option to purchase.
  4. Tran consulted a lawyer who advised her about unusual terms in the option.
  5. Tran countermanded the cheque after discovering Ong was the owner and expressing unhappiness with the non-disclosure.

5. Formal Citations

  1. Ong Keh Choo v Paul Huntington Bernardo and another, Suit No 258 of 2018, [2018] SGHC 175

6. Timeline

DateEvent
Tran contacted Ong regarding an advertisement for the sale of a flat.
Tran and Ong met to see the flat.
Tran wrote a cheque for $3.16m for Ong to show the owner.
Ong and Judi Lee handed the option to Tran.
Judgment date
Judgment date

7. Legal Issues

  1. Summary Judgment
    • Outcome: The court allowed the appeal and granted the defendants unconditional leave to defend, finding that a full inquiry was needed.
    • Category: Procedural
  2. Failure of Consideration
    • Outcome: The court found that a full inquiry was needed to determine whether the cheque was given in consideration of the option.
    • Category: Substantive
  3. Fraud
    • Outcome: The court noted the peculiar conduct of Ong and Judi Lee, suggesting a potential issue of fraud that warranted further investigation at trial.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Action on a dishonoured cheque

10. Practice Areas

  • Summary Judgment

11. Industries

  • Real Estate

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

  • Option to purchase
  • Summary judgment
  • Failure of consideration
  • Dishonoured cheque
  • Real estate agent

15.2 Keywords

  • Summary judgment
  • Real estate
  • Dishonoured cheque
  • Failure of consideration
  • Singapore

16. Subjects

  • Civil Procedure
  • Contract Law
  • Real Estate Law

17. Areas of Law

  • Civil Procedure
  • Bills of Exchange And Other Negotiable Instruments