Immigrant Life in Singapore: Beware of "Pending Contracts"

The following is an article about the life of immigrants in Singapore: "Be careful when signing contracts" for your reference!

Immigrant Life in Singapore: Beware of "Pending Contracts"

Customer M Jun is an importer and exporter. He called me and said that a large local enterprise had ordered a lot of goods from him. The two sides talked about the specifications, price and delivery time of the goods and signed a simple document. Because some goods are from other places, Mr. M hopes to place an order earlier, but the payment for these goods is not small. He asked me what the risks were, and I asked him to fax me the contract. The contract is basically completed and prepared by the buyer. But there is a clause at the back of the contract that says "This contract is subject to the contract". I told Mr. M to place the order slowly and wait until the formal contract is signed, so there will be no risk.

In Chinese, "subject to contract" can be translated as "subject to signing a formal contract" or "to be signed".

In Singapore, if there is this sentence in the contract, the legal assumption is that neither party agrees to be bound by the law at this stage. Another meaning of this sentence is that this document cannot be presented in court as evidence of "a deal has been reached". If M goes to purchase goods now and the buyer doesn't buy them in the end, M has nothing to say.

However, if the buyer pays a part of the deposit according to the provisions of the initial contract, the court may decide that their initial contract is valid. The sentence "bound by the contract" has no negative meaning. This is because both sides have positive behaviors, which can be inferred as being willing to be bound by law. Similarly, if, according to the facts of the case, the court considers that there is other evidence to prove that both parties really intend to be bound by law, then this sentence does not affect the validity of the contract. But in any case, you must be very careful when you see this sentence when signing a contract with someone.

By the way, in order to be legally effective, a contract must have:

(1) quotation. For example, what goods the seller wants to sell, what price, and invite people who have the intention to buy to "accept";

(2) (Accept). Accept the goods and prices that you intend to buy, but you can't attach any conditions when you accept them, otherwise it will be gone.

(3) When both parties completely agree on the goods and prices, mutual obligations and rights arise. There is a consideration for the transaction, and objectively the two sides have entered a legal relationship.

(4) The main contents should be clear, such as the specifications and unit price of the goods. Pay back the money in US dollars or Singapore dollars. If there is a dispute, the court can have an objective basis to judge the case and know the specific obligations and rights of both parties.

(5) Finally, both parties should have the ability to conclude contracts. If one party is a minor (unless you want to buy necessities for minors) or goes bankrupt, the contract will not take effect. What customs should Singapore immigrants pay attention to? Singapore immigration welfare customs introduces Singapore immigration life tips Singapore immigration traffic knowledge introduction View all documentation resources of Singapore immigrants >>