Kwek Hong Lim v Kwek Sum Chuan: Oral Contract Dispute over Supermarket Shares and Property

Mr. Kwek Hong Lim sued his father, Mr. Kwek Sum Chuan, in the General Division of the High Court of Singapore, claiming 60% of the shareholding in YES Supermarket Pte Ltd and 60% of a property based on an alleged oral agreement made in 2011. The court, presided over by Hoo Sheau Peng J, dismissed the plaintiff's claim, finding that the plaintiff failed to prove the existence of the alleged oral agreement. The claim was for breach of contract.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

I dismiss the plaintiff’s claim.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Son sues father over an alleged oral agreement for supermarket shares and property. The court dismissed the claim, finding no valid contract.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Kwek Hong LimPlaintiffIndividualClaim DismissedLost
Kwek Sum ChuanDefendantIndividualJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Hoo Sheau PengJudge of the High CourtYes

4. Counsels

4. Facts

  1. Plaintiff claimed an oral agreement with his father for 60% shares in YES Supermarket and a property.
  2. The alleged agreement was purportedly made in late 2011 in exchange for the plaintiff's continued employment.
  3. Plaintiff claimed he rejected an offer from Pasaraya due to the alleged oral agreement.
  4. Defendant denied the existence of the alleged oral agreement.
  5. Plaintiff was appointed a director of the Company in 2012.
  6. Plaintiff's shareholding increased by about 6% in 2012.
  7. The relationship between father and son deteriorated significantly by March 2018.

5. Formal Citations

  1. Kwek Hong Lim v Kwek Sum Chuan, Suit No 1234 of 2020, [2023] SGHC 67

6. Timeline

DateEvent
Company incorporated
Plaintiff started working for the Company
Property purchased in the name of Kwek Sum Chuan Holding Pte Ltd
Plaintiff appointed CEO
Alleged Oral Agreement entered into
Plaintiff appointed a director of the Company
Parties met in the Company’s office
Plaintiff asked the defendant to honour the Second Set of Terms
Company’s supermarket business ceased to be viable
Relationship between father and son deteriorated significantly
Shareholders resolved to end the Company’s supermarket operations
Plaintiff threatened to commence proceedings against the defendant
Defendant met with plaintiff
Shin Min News ran an article about the family’s disputes
Parties met again
Plaintiff commenced DC/DC 1437/2020 against the defendant
Defence dated
Defendant’s Opening Statement dated
Trial began
Judgment reserved

7. Legal Issues

  1. Existence of Oral Agreement
    • Outcome: The court found that the plaintiff failed to prove the existence of the alleged oral agreement.
    • Category: Substantive
    • Related Cases:
      • [2015] SGHC 78
  2. Intention to Create Legal Relations
    • Outcome: The court was not convinced that the parties intended to create legal relations.
    • Category: Substantive
    • Related Cases:
      • [2019] SGCA 61
  3. Certainty of Contractual Terms
    • Outcome: The court found the Second Set of Terms to be uncertain in several aspects.
    • Category: Substantive
    • Related Cases:
      • [2022] SGHC 192
      • [1934] 2 KB 1
      • [2013] 4 SLR 1023
      • [2015] 4 SLR 69
  4. Admissibility of Evidence
    • Outcome: The court found that the plaintiff has not managed to prove the authenticity of the Letter of Offer and Video Recording. As such, the letter and video are inadmissible.
    • Category: Procedural
    • Related Cases:
      • [2021] 4 SLR 883
      • [2006] 3 SLR(R) 769
      • [2021] 1 SLR 1217
      • [2008] 2 SLR(R) 491

8. Remedies Sought

  1. 60% of the shares in the Company
  2. 60% of the Property
  3. Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Retail
  • Supermarket

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
ARS v ARTHigh CourtYes[2015] SGHC 78SingaporeCited for the guiding principles on the proper approach for determining the existence of an oral agreement.
CIMB Bank Bhd v Italmatic Tyre & Retreading Equipment (Asia) Pte LtdHigh CourtYes[2021] 4 SLR 883SingaporeCited for the principle that authenticity is a necessary condition of admissibility of evidence.
Jet Holding Ltd and others v Cooper Cameron (Singapore) Pte Ltd and another and other appealsCourt of AppealYes[2006] 3 SLR(R) 769SingaporeCited for the rule that a party is deemed to admit the authenticity of a document in his opponent’s list of documents unless he shows that he had issued a notice of non-admission within the stipulated time.
CIMB Bank Bhd v World Fuel Services (Singapore) Pte Ltd and another appealCourt of AppealYes[2021] 1 SLR 1217SingaporeCited for the principle that the maker of a document should generally be called as a witness to prove its authenticity.
Pacific Recreation Pte Ltd v S Y Technology Inc and another appealCourt of AppealYes[2008] 2 SLR(R) 491SingaporeCited for the principle that the failure to comply with any of the requirements under O 40A may result in the expert’s testimony being accorded little or no evidentiary weight and adverse cost orders for the party who engaged that expert.
Ong Wui Teck (personal representative of the estate of Chew Chen Chin, deceased) v Ong Wui Swoon and another and another appealCourt of AppealYes[2019] SGCA 61SingaporeCited for the presumption that parties in a domestic context have no intention to create legal relations.
Chan Tam Hoi (alias Paul Chan) v Wang Jian and other mattersHigh CourtYes[2022] SGHC 192SingaporeCited for the principle that for a contract to be valid and enforceable, its terms must be sufficiently certain.
Foley v Classique Coaches LtdCourt of King's BenchYes[1934] 2 KB 1England and WalesCited for the principle that where a term or agreement is uncertain, and where there is no objective or reasonable method of ascertaining how the term or agreement is to be carried out, the term or agreement is unworkable.
Rudhra Minerals Pte Ltd v MRI Trading Pte Ltd (formerly known as CWT Integrated Services Pte Ltd)High CourtYes[2013] 4 SLR 1023SingaporeCited for the principle that where a term or agreement is uncertain, and where there is no objective or reasonable method of ascertaining how the term or agreement is to be carried out, the term or agreement is unworkable.
Harwindar Singh s/o Geja Singh v Wong Lok Yung Michael and anotherHigh CourtYes[2015] 4 SLR 69SingaporeCited for the principle that while a contractual term may provide for a range of options, such a term is uncertain if there is no agreed method to decide on an option within that range.

13. Applicable Rules

Rule Name
O 27 r 4(1) of the Rules of Court (2014 Rev Ed)
Order 40A of the 2014 ROC
O 40A r 3(2)(a) of the 2014 ROC
O 40A r 3(2)(h) of the 2014 ROC

14. Applicable Statutes

Statute NameJurisdiction
Rules of Court (2014 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Oral Agreement
  • Shareholding
  • Supermarket
  • Property
  • Director
  • CEO
  • Settlement Agreement
  • Authenticity of Evidence
  • Intention to Create Legal Relations
  • Certainty of Terms

15.2 Keywords

  • oral contract
  • shares
  • property
  • family dispute
  • supermarket
  • Singapore
  • high court

17. Areas of Law

16. Subjects

  • Contract Law
  • Evidence
  • Family Business