We acted for the appellant, Broadley Construction Pte Ltd (“Broadley”), in an appeal against its supplier, Alacran Design Pte Ltd (“Alacran”). Parties entered into a settlement agreement under which Broadley was to be free of further responsibility as regards to Alacran (the “Settlement Agreement”). At the Court below, the High Court set aside the Settlement Agreement on the grounds of fraudulent misrepresentation and unilateral mistake.
We successfully overturned the entire judgment on appeal. The Court of Appeal also agreed with our arguments and affirmed, for the first time in Singapore, that a misrepresentation is capable of being corrected by express contractual terms where the true position appears clearly from the terms of the very contract which the claimant says it was induced to enter into by misrepresentation. In so doing, the Court of Appeal carved out a very narrow exception to the long-standing rule in Redgrave v Hurd (1881) 20 Ch D 1.