Oan Chim Seng v Leong Kai Rui: Breach of Oral Investment Agreement & Misrepresentation

In the case of Oan Chim Seng v Leong Kai Rui, before the General Division of the High Court of Singapore on 23 October 2024, Oan Chim Seng claimed that Leong Kai Rui breached an oral investment agreement and made misrepresentations, seeking $4,700,524.24. The court, presided over by Justice Kwek Mean Luck, found in favor of Oan, holding that Leong breached the terms of the investment agreement.

1. Case Overview

1.1 Court

General Division of the High Court

1.2 Outcome

Judgment for the Claimant

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Oan Chim Seng sues Leong Kai Rui for breach of an oral investment agreement and misrepresentation, seeking $4,700,524.24. The court ruled in favor of Oan.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Oan Chim SengClaimantIndividualClaim AllowedWonLam Kuet Keng Steven John
Leong Kai Rui (Liang Kairui)DefendantIndividualClaim DismissedLostLeong Kai Rui

3. Judges

Judge NameTitleDelivered Judgment
Kwek Mean LuckJudgeYes

4. Counsels

Counsel NameOrganization
Lam Kuet Keng Steven JohnTemplars Law LLC
Leong Kai RuiIn-Person

4. Facts

  1. Oan and Leong met on 8 November 2019 to discuss investment opportunities.
  2. Leong agreed to manage $5m of Oan’s funds based on certain terms.
  3. Oan transferred $5m to Axicorp account on 18 November 2019.
  4. Leong conducted trades with the funds in the Axicorp account.
  5. Oan requested a withdrawal of $5m in June 2021 and received $299,475.76.
  6. Leong sent a WhatsApp message to Jerrold outlining the terms of the investment agreement.
  7. Leong controlled Oan's trading account and changed the password periodically.

5. Formal Citations

  1. Oan Chim Seng v Leong Kai Rui (Liang Kairui), Originating Claim No 857 of 2023, [2024] SGHC 268
  2. ARS v ART and anor, , [2015] SGHC 78
  3. Xia Zheng v Lee King Anne, , [2024] SGHC 253

6. Timeline

DateEvent
Oan met Leong to discuss investment opportunities
WhatsApp group 'Forex Trading [Account]: Oan' was created
Leong sent Jerrold WhatsApp messages regarding the investment agreement
Oan transferred $5m to Axicorp account
Oan received $299,475.76 after withdrawal request
Oan commenced suit OC 857 of 2023
Trial began
Closing submissions were filed
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court held that Leong breached the terms of the Investment Agreement.
    • Category: Substantive
    • Sub-Issues:
      • Failure to restore investment funds
      • Breach of capital guarantee
    • Related Cases:
      • [2015] SGHC 78
  2. Misrepresentation
    • Outcome: The court found that Oan did not satisfy his burden of proof that the alleged representations were made.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Misrepresentation

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
ARS v ART and anorHigh CourtYes[2015] SGHC 78SingaporeCited for guiding principles on determining the existence of an oral agreement.
Xia Zheng v Lee King AnneHigh CourtYes[2024] SGHC 253SingaporeCited to highlight that pure assertions in pleadings are insufficient to prove oral agreements without objective evidence.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Securities and Futures ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Investment Agreement
  • Capital Guarantee
  • Gapped Fund
  • Recovery Period
  • Profit Sharing
  • Accredited Investor

15.2 Keywords

  • contract
  • investment
  • breach
  • misrepresentation
  • forex
  • trading

16. Subjects

  • Contract Law
  • Investment Law
  • Breach of Contract
  • Misrepresentation

17. Areas of Law

  • Contract Law
  • Misrepresentation