BUS201 CONTRACT AND AGENCY

LAW

Week 1: Introduction to Law and the Singapore Legal System

 Outline

• Introduction
• Overview of BUS201
• SUSS pedagogy
• Guidelines on analyzing and answering legal
questions
• Learning Outcomes for SU1
 Overview of BUS201

Week Study Guide Chapters in textbook

1 & 2 : Introduction to Law and the Singapore
1 Unit 1
Legal System
3 & 4 : Contract Formation (Offer, Acceptance,
2
Unit 2 Consideration and Intention to create legal
relations)

3 Unit 3 5 : Terms

4 Unit 4 6 : Vitiating Factors

5 Unit 5 7 & 8 : Discharge and Remedies for Breach

6 Unit 6 16 : Law of Agency

3
 SUSS Pedagogy

One-way lecture Self-Study Class Activities

The
University’s

Information Knowledge Knowledge Unique

ACQUISITION APPLICATION
Value
Proposition
Everything wrapped Learn how to find out Learn how to apply
up nicely in a box more information on theories to real-life
your own problems for You
* NOT like real-life
* Required skill in the * Practical problem-
workplace solving skills * Stand out from the
* You fail to learn how
crowd with your
to apply theories to
* It’s not WHAT you * You learn HOW to practical skills at work
facts
know but HOW you apply theories to and in life
know more facts (Assessments,
Exam, Real-life)
 Guidelines on
Analysing and Answering
Legal Questions
To note: Not compulsory to use the IRAC methodology
How to Analyse and Advise?

1. Identify the ISSUE

2. State the applicable RULE
• Define the terms
• Provide an overview of the rule

3. APPLY the applicable rule to the

facts
» Cite case law to explain why the rule is
relevant to your facts

4. State the CONCLUSION

 Remember to cite case law and
! statutory provisions (where
applicable), to support your legal
principles and your analysis.

Remember to provide proper

! referencing – this is important in
research and analysis.

Wikipedia and MindTools are NOT valid

referencing sources!
 Class Activity – IRAC

Mary offered to buy Tom’s car for S$1,000.

Tom called her to accept but the phone line was
bad. She couldn’t hear him. Advise Tom who is
insisting that Mary must buy the car.
1. Issue:

2. Rule:

3. Apply:
4. Conclusion:
 Learning Outcomes for SU1

• State the nature and role of law in society.

• Explain the elements of a legal system.
• Distinguish the common law tradition from the civil law tradition.
• Explain legal concepts like: rule of law, common law, equity,
jurisdiction, precedent.
• Explain the key features of the Singapore legal system.
• Identify the sources of Singapore law.
• Demonstrate an understanding of the hierarchy and jurisdiction
of the courts and describe the stages of litigation.
• Compare and contrast litigation with alternative dispute
resolution methods.
• Nature and Role of Law
• Legal Traditions
• Key Concepts
 Nature and Role of Law

 The core function of law is to

prescribe rights and obligations.

 Courts are set up to enforce

these rights and obligations.

 Legal System: laws, institutions

and culture.

 Rule of Law:
Law provides the legitimacy for
government powers and acts as
constraint.
Class Activity – Reflection Question

Do you think that surrogacy

contracts should be upheld by our
Courts?

Additional Notes:
• Surrogacy is defined (under the MOH directives for private
healthcare institutions providing assisted reproduction services)
as the arrangement where “a woman is artificially impregnated,
whether for monetary consideration or not, with the intention
that the child is to be the social child of some other person or
couple.”
• Consider the fairly recent High Court decision of UKM v
Attorney-General (2018).
 Legal Traditions
 A legal system can be classified based on its legal tradition.
 Two leading legal systems : Civil Law and Common Law.
Civil Law System Common Law System

 A civil law system codifies all its
laws.
 The codes are comprehensive –
substantive and procedural laws
which govern any given situation.
 All rights and obligations are set out
in the codes.
 The judge looks to the code and its
provisions to make and justify his
rulings.
 A common law system relies on the
development of the law through
judicial decisions known as “case
law”.
 Although laws may also be codified
into statutes, case law is also an
important source of law.
 Countries with common law
systems look to English Court
decisions for guidance.
Principle of binding precedent

 A distinctive feature of a common law

system is the principle of binding precedent
(which is called “stare decisis”, which means
“stand by things that have been settled”).

 An earlier decision of a higher court is

binding authority for a lower court within the
same hierarchy, if the disputes are similar.
The “ratio decidendi” (legal reasoning to
determine the outcome) must be followed
and adopted by the lower court.

 Any other legal reasoning by a higher court

which is not determinant would only be
persuasive (this is called the “obiter
dictum”).
Jurisdiction

 In geographical terms, jurisdiction is the

boundary within which a law can exert its
influence.

 Exceptionally, a country may pass laws

which have extraterritorial jurisdiction.

 Another aspect of jurisdiction refers to the

source and limit of the authority of the
courts within a legal system.
Magistrate’s Court : $60,000
District Court : $250,000
High Court : No limit
 Class Activity – Key Concepts

WHAT DOES IT MEAN?

Common Law Jurisdiction Precedent

Categories of Law Ratio decidendi

 Class Activity - Applying Key Concepts

 To a business person, why does the principle of stare decisis

(or binding precedent) operating in a common law system
matter?
 If you are setting up a new business which operates via a
mobile app, what possible categories of law would apply to
your new business, and why?

17
• Key Features of Singapore’s legal system
• Sources of Singapore Law
• Courts
• Dispute Resolution Methods

18
 Key Features

 Constitution : foundational legal document

(http://statutes.agc.gov.sg)
Part IV Fundamental Liberties
Art 9 : Liberty of the person
Art 10 : Slavery and forced labour prohibited
Art 11 : Protection against retrospective criminal laws and repeated trials
Art 12 : Equal protection
Art 13 : Prohibition of banishment and freedom of movement
Art 14 : Freedom of speech, assembly and association
Art 15 : Freedom of religion
Art 16 : Rights in respect of Education

 Separation of Powers :
Pursuant to the Constitution, powers and functions of the
state are divided among the three main institutions –
Executive, Legislature and Judiciary – to create a system of
checks and balances to prevent abuse of power.
(www.parliament.gov.sg)
 Singapore’s Constitutional Structure
Presidential
Council for
Minority Rights

Council of
Presidential
Advisers
CONSTITUTION

EXECUTIVE LEGISLATURE JUDICIARY

Elected President
Elected President Parliament
Prime Minister (Elected MPs, Supreme Court
Cabinet Ministers NMPs, NCMPs) State Courts
Sources of Singapore Law
 Steps in Law-Making

Bills (draft legislation) (First Reading)

↓
Debate + Vote (Second & Third Reading)
↓
Passed by Parliament – President (assent)
↓
Law (effective - specific date in Act or if no date, when published
in Government Gazette)
Usually numbered –> Citation (“Cap”) Singapore
e.g. Companies Act (Cap 50)
 Primary & Subsidiary Legislation

Companies Act, Cap 50 of Singapore

(primary legislation)
↓
Minister of Finance
↓
Detailed Rules and Regulations
(subsidiary or delegated legislation)

(together, primary and subsidiary legislation)

 Singapore Courts

 Singapore has a two-tiered court system comprising the Supreme Court and
the State Courts.

 Supreme Court : Court of Appeal With effect from 2 January 2021, the High
Court has been restructured into two
Divisions:
High Court • The General Division of the High Court; and
• The Appellate Division of the High Court.

.
 State Courts :

Magistrate’s Small Claims Other Specialised

District Court
Court Tribunal Courts

 Syariah Court : Established under the Administration of Muslim Law Act.

 Dispute Resolution

• Adjudication by a court of law

Litigation • Rules of Court
• Open trial resulting in a court judgment

• Private process of adjudication

Arbitration • Arbitrator and arbitral rules
• Award

• Private process before neutral third party

Mediation • Non-binding compromise
 Class Activity – Case Scenario

John has extended a personal loan, free of interest, to his

friend, Sam, of S$7,000.
Sam has agreed to repay the loan within 6 months.
Upon expiry of 6 months, Sam refuses to repay the loan.

Advise John on the following:

a. The options he has to resolve the dispute.
b. If the matter is to be resolved in court, what are the stages
involved in the litigation process?
Class Activity – Reflection Question

Which do you think is the most

favoured method of dispute
resolution for businesses involved in
cross-border transactions? Why?
Additional Notes:
There is a growing number of cases handled by the Singapore
International Arbitration Centre (SIAC) over the past few years. SIAC
has received over 400 cases in each of 2017 and 2018, and in 2019
set a new record with 479 new case filings. SIAC further set a new
record in the year 2020, with 1080 new case filings. This is the first
time that SIAC’s caseload has crossed the 1000-case threshold.
(Source: SIAC’s website)
 In the News…
THE SINGAPORE CONVENTION ON MEDIATION

• On 20 December 2018, the 73rd session of the UN General Assembly (UNGA) in New York
passed a resolution to adopt the UN Convention on International Settlement Agreements
Resulting from Mediation (also known as the “Singapore Convention on Mediation”), and to
name it after Singapore.

• 46 States signed the Singapore Convention on Mediation in a ceremony held in Singapore

on 7 August 2019. These countries include (other than Singapore) the United States, China,
India and South Korea.

• The Singapore Convention on Mediation - the first UN treaty to carry Singapore's name -
will make it easier for mediated settlement agreements to be enforced, giving businesses
more assurance that cross-border commercial disputes can be resolved through mediation.

• The Singapore Convention on Mediation has entered into force on 12 September 2020.

• For further reading, see the Convention website: https://www.singaporeconvention.org/

 END OF STUDY UNIT 1
NEXT WEEK – CONTRACT FORMATION