B205: John was the Owner and Director of Gourmet Sedap Private Limited (GSPL), a Company in the Food and Beverages Business: Business Law Report, RP, Singapore

University Republic Polytechnic (RP)
Subject B205: Business Law

Scenario 1
John was the owner and director of Gourmet Sedap Private Limited (GSPL), a company in the food and beverages business. On 1 Feb, GSPL entered into a $150,000 contract with Anyhow Contractors (AC), which specialised in setting up commercial kitchens, to convert an empty shop into a sushi kitchen for its new food delivery service. The work was to be completed on 1 May so that GSPL could start its sushi delivery service on 5 May. Clause 17 of the contract

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“If the contract work cannot be completed within the stipulated time, Anyhow Contractors agree to pay a sum of $25,000 in full satisfaction of our liability.”

GSPL also entered into a contract for fresh tuna from Maguro Fishmongers for $10,000, which was to be delivered on 5 May. This date was made known to AC as well.

Unfortunately, AC only completed the conversion work on 10 May and GSPL managed to start its sushi delivery service only on 15 May. The delay resulted in lost profits of about $1,000 per day. Due to the delay in starting operations, John had to divert the delivery of the tuna to his other restaurant outlets to make other dishes, resulting in a loss of $5,000.

Since the shop was near to his home, John decided to buy an e-scooter for his trips there to meet his operations manager instead of driving his car. The e-scooter would also allow him to make occasional deliveries around his neighbourhood when there was a shortage of delivery staff. The e-scooter purchase was made between the seller Beng Can Ride (BCR) Private Limited and GSPL.

After a few weeks’ use, John found that the battery could no longer be charged even though BCR had confirmed that the equipment was entirely new. When he brought the e-scooter back to BCR for a battery replacement, the manager at BCR informed John that BCR was not obliged to replace the battery due to the following clause in the contract:

“20. The Seller, not being the manufacturer of the equipment, does not let the goods be subject to any warranty or condition, whether express or implied, as to description, quality or fitness for any particular purpose or at all.”

John complained that he was not aware of the clause, but the manager refused to entertain him.

Answer the following question relating to the scenario given above.
1) Using the facts provided in the scenario, advise John as to the possible legal action and claims by GSPL against AC and BCR. Use case laws and/or statutes where applicable to support your answer.

Scenario 2
Below is an excerpt of a news article published on 8 Sep 2020.

Finding an empty seat in Singapore’s malls is like finding an oasis in a desert. But one shopper was in for a rude shock when the seat he’d found fell apart the moment he sat on it.

He was left with an 11cm-long wound on his leg after a wooden seat collapsed at Waterway Point on Thursday (Sept 3) evening, the mall confirmed. Sharing pictures of his injuries and the seat in question on Facebook the same day, the victim, Victor Tan, urged those who visit the mall to take note of the potential hazard.

“This sitting platform (without the ‘Do Not Sit’ social distancing sticker) collapsed the moment I sat on it with my daughter. I’m 70 plus kg and she’s 11kg,”

he wrote. “This could have resulted in more serious injuries or even fatal ones especially for the elderly,” Tan said, adding in a comment that he often sees elderly shoppers resting on similar seats at the mall.

Tan, who was at the mall with his wife and 16-month-old daughter, also sustained abrasions on his back and several rips in his shorts, he told Shin Min Daily News.

The accident happened out of the blue, just as he sat down to clean his daughter’s hands while waiting for his wife, he recounted. Fortunately, his daughter was sitting on his leg and he was able to hold her to stop her from falling.
While his daughter didn’t cry or fuss after the fall, she sustained some abrasions, he said, adding that he would keep a close watch on her condition. Raising concerns about the wooden seat, which appeared to be hollow, Tan called on the mall to take responsibility for the accident and provide an explanation.

Answer the following question relating to the article given above.
2) Assume that Victor wants to sue the mall operator. Using the facts provided in the article, discuss the possible legal action and types of damages available to Victor. Use case laws and/or statutes where applicable to support your answer.

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