Contract Formation in Singapore

The Singapore law on contract formation largely replicates the English law which it inherited and is covered by the Application of English Law Act 1993 ‘so far as it is applicable to the circumstances of Singapore and its inhabitants and subject to such modifications as those circumstances may require’. The offer and acceptance approach to contract formation is mediated through the objective test of intention taking account of the circumstances in which the words or conduct are to be interpreted; but if one party’s mistaken expression is known to the other, there is no valid contract. Where such an analysis is difficult, the courts may imply contracts or perfect contracts if the parties’ intention to contract is clear. Offers are distinguished from ‘invitations to treat’ since the former evince an intention to be bound by acceptance, while the latter do not. Offers can be revoked at any time before acceptance and, in the absence of consideration, even before the expiry of the time for which the offers are stated to be open.