Legislation and Case Notes: The Law on Deposits: Unresolved Issues— Hon Chin Kong v Yip Fook Mun

12 Pages Posted: 4 Jun 2019

See all articles by Wen Jian Wong

Wen Jian Wong

National University of Singapore (NUS) - Faculty of Law

Date Written: March 1, 2019

Abstract

The law on deposits in Singapore was recently clarified in Hon Chin Kong v Yip Fook Mun. The court provided a comprehensive framework for payers seeking repayment of sums paid to payees, which should provide clarity and certainty to contractual parties. Indeed, it is now clear that a “true deposit” may be forfeited by the payee. However, the current state of the law has unresolved issues, especially in relation to the interaction of the law on deposits with the penalty rule. This is particularly so in light of the significant developments with respect to the penalty rule in the UK in recent years. It is thus appropriate to examine the decision in Hon Chin Kong, and the possible solutions to these unresolved issues. It is proposed that moving forward, forfeiture of part payments and deposits should be dealt with under the penalty rule, especially if Cavendish is adopted in Singapore.

Suggested Citation

Wong, Wen Jian, Legislation and Case Notes: The Law on Deposits: Unresolved Issues— Hon Chin Kong v Yip Fook Mun (March 1, 2019). Singapore Journal of Legal Studies, Mar 19, pp 274-285 (2019), Available at SSRN: https://ssrn.com/abstract=3398737

Wen Jian Wong (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

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