Talking Point: Engineering and Construction - Singapore (April 2011)

When negotiating a contract, it is essential that a contracting party has a clear understanding of what approach the courts or arbitral tribunal may take if they are asked to interpret the meaning of the contract, what legal principles they will likely apply and what evidence they may take into account in so doing. This knowledge will clearly be useful in helping the contracting party to better assess what is being proposed by the other side and to make an informed decision as to whether it should seek an amendment to the contract language either to clarify any uncertainty in the language or improve its contractual position. This is an area of the law which has seen a fundamental shift in recent times. This brief note outlines the approach which has been adopted by the Singapore courts in relation to contract interpretation. It is hoped that this note will provide useful information for those parties who may be asked to consider or agree to Singapore law as the governing law for the contract.

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