Elvira owns a fashion shop on Orchard Road in Singapore selling expensive women’s and men’s clothing. She decides to export so-called ‘Elephant Leather’ pants (‘EL pants’) from a supplier in Los Angeles. The name ‘Elephant Leather’ refers to the fact that the pants have the look and texture of elephant hide. They are not made from elephant hide: they are manufactured in the United States from a synthetic material.

The contract between Elvira and the supplier Winston states that the applicable law for determining any disputes under the contract will be that of the Republic of Singapore. The forum for disputes will also be Singapore. When a shipment of the EL Pants arrives in Singapore it is examined by Singapore Customs officers who are concerned about references in the accompanying documentation to ‘elephant leather’. The officers decide that the pants are made of elephant leather. Singapore law requires that any product made from any protected animal species – including African elephants - must be impounded by Customs and subsequently destroyed.

When informed that she is under Customs investigation for importing a prohibited product Elvira instantly calls Winston and tells him that she is terminating the contract and will require him to pay damages. The Customs Office impounds the consignment of EL pants and is about to begin its investigation of Elvira when the Covid-19 outbreak causes the Government to enforce so-called ‘lockdown’ in Singapore. Most government and commercial activities are suspended for the period of lockdown.

During lockdown, the warehouse in which Singapore Customs has impounded the EL pants consignment burns down. All things stored in the warehouse, including the EL pants consignment, are destroyed by the fire. A Customs officer informs Elvira that prior to lockdown, an expert consultant had examined the EL pants and informed Customs that they were made from legal synthetic material and not elephant hide.

The officer says that Customs will not investigate Elvira and that Customs is not liable for the loss of the EL pants consignment. Elvira informs Winston that she will not be pursuing a contractual claim against him. Winston informs her that he is now going to sue her in a Singapore court for what he says is her unjustified repudiation of contract. He says that he expects that the court will make an award in his favor. He says that Elvira’s previous decision to terminate the contract is going to cost her a great deal of money as she will have to pay a large amount of damages.

Advise Elvira whether:

a) Winston is likely to succeed in his claim for damages?

b) Any doctrine of contract law can be relied upon by Elvira to enable to avoid liability for alleged breach of contract?

c) Whether Elvira can make a claim against Customs for breach of contract (and whether Customs is also entitled to rely a contract law doctrine to avoid liability)?

Answer rating: 100% (QA)

a During customs investigation there are 2 probabilities 1 correctly investigated p c 2 wrongly inve... View the full answer