Contracts - implied terms

Most Small Claims Tribunal cases are based on contract law. However, often a written contract does not state all of one's expectations. What can be done in such a situation?

One possible solution is to use the implied term argument. You will try to persuade the court that certain promises are to be implied into the contract. The test the courts often use is the business efficacy test - whether the implied term is necessary to give the contract business efficacy. This test is not always easy to understand or apply. You may wish to think of whether the implied promise is so obvious that there is no need to state it in the written contract.

2 obvious examples of implied terms -

a) an eating establishment eg a restaurant will serve you food that is fit to eat and will not give you food poisoning;

b) a taxi driver will drive you safely to your destination.

Please note that the abovepost is only information, and you may wish to take legal advice in this area.

Small Claims Tribunal - what kind of cases

Those thinking of using the Small Claims Tribunal should be aware of the type of cases that it can hear.

Under section 5 of the Small Claims Tribunal Act, only the following types of cases are covered -

1. contract disputes over the sale of goods or the supply of services (note that this does not cover employment contracts)
2. tortious claims for damage to any property (but not covering traffic accidents) and
   
3. contract disputes for rental of residential properties for 2 years or less.

The amount claimed can also not exceed $10,000, or $20,000 if the other party agrees to have the dispute heard by the Tribunal. In addition, the right to sue must not be more than 1 year old.

A later post will examine some of the issues relating to this Tribunal's jurisdiction (in other words, the type of cases it has power over).

Small Claims Tribunal - jurisdiction

When lawyers use the word "jurisdiction", they mean the type of cases that the particular court can hear and the limits on that court's powers.

As stated previously, the Tribunal can normally only hear claims for amounts of up to $10,000. The Singapore High Court in the case of Mohammed Akhtar v Schneider has clarified that this claim amount is not related to the value of the contract. The claim amount depends on what is claimed. If you are claiming compensation only, then the claim amount is the amount of compensation that you want. On the other hand, if you want the entire contract cancelled (or rescinded), then the claim amount would be the value of the entire contract.

Also, the Tribunal can only hear claims not more than 1 year old - to use legal jargon, up to 1 year from the date that the cause of action accrued. In simple English, it means up to 1 year from the time you had a right to sue.

So when do you have a right to sue? For the payment of money, the relevant day is the contractual date of payment. For other promises, when was the last day that the other party was allowed to perform his promise eg paint your house or repair your computer. You would have a right to sue on the day following that day.

Small Claims Tribunal case - Gym True Fitness pays up

The Straits Times on 15 January 2009 reported that gym operator True Fitness at Suntec City paid up a Small Claims Tribunal judgment for the sum of over $2500 after a court official showed up at their door.

Madam Au-Yong, a former customer of True Planet which was taken over by True Fitness, had won a case against True Planet in relation to a refund for the unused portion of an exercise package that she had signed up for. She had ended the contract with True Planet when they were no longer able to provide her a trainer with expertise in rehabilitation.

This incident shows very well consumer rights at work.

The Small Claims Tribunal

AIM of this blog

To provide consumer information regarding bad service providers.

It is easy to complain about bad service or defective goods but the only way to show you are serious about the situation is to file a claim with the Small Claims Tribunal.

If you have do so, then contact me with the name of the other party you are suing, the case number and a short summary say 200 words about the problems.

This site will serve as a warning to other potential customers of bad service providers. Do not let them get away with it.

DISCLAIMER - Nothing in this blog should be considered as legal advice. The blog provides only information and users are advised to consult their lawyers before making any legal decisions.