Teo Hong Choo v Chin Kiang Industries Pte Ltd

• Jurisdiction: Singapore
• Judge: A P Rajah J
• Judgment Date: 07 September 1983
• Neutral Citation: [1983] SGHC 15
• Citation: [1983] SGHC 15
• Defendant Counsel: Gan Hiang Chye and Wong Juan Swee (Wong Juan Swee)
• Published date: 19 September 2003
• Plaintiff Counsel: S Rai (Goh & Hin)
• Date: 07 September 1983
• Docket Number: Originating Summons No 322 of 1983
• Court: High Court (Singapore)
• Subject Matter: Unsatisfactory answers,Sale of land,Legal requisitions,Conditions of sale,Land,Right of purchaser to annul sale and claim refund of deposit

This is an application under s 4 of the Conveyancing and Law of Property Act (Cap 268) by the plaintiff who seeks the determination of the court on the following questions and claims the following relief, namely:

(1) A declaration that the reply received from the Development Control Branch to the plaintiff`s requisition read together with the interpretation plan is unsatisfactory as contemplated by cl 5 of the option to purchase, dated 3 January 1983, given by the defendants to the plaintiff.

(2) A declaration that the plaintiff is entitled to rescind the contract.

(3) That the defendants may be ordered to repay to the plaintiff the sum of $59,000 being the amount of deposit under the contract.

The defendants in consideration of the sum of $20,000 paid by the plaintiff to them granted to the plaintiff an option dated 3 January 1983, to purchase No 1214 Upper Serangoon Road (area approximately 455 sq m) for the sum of $590,000. The said option which contained all the terms and conditions under which the purchase was to be effected was to expire at 4pm on 6 January 1983, that is within three days of the granting of the option. The plaintiff exercised the said option under cl 2 thereof before the expiry date by signing the `acceptance copy` and paying $39,000 being the balance of the 10% of the purchase price. The $39,000 was to be held by the vendors` solicitors as stakeholders.

Clause 3 of the said option provides that, `the sale is subject to the Singapore Law Society`s Conditions of Sale 1981 so far as the same are applicable to a sale by private treaty and are not varied by or inconsistent with the special conditions herein contained.`

Clause 15 of the said Law Society`s Condition of Sale 1981 provides that:

The property is sold subject to any government road, back lane or other improvement scheme whatever affecting the same, whether mentioned in the particulars or not, and the purchaser shall be deemed to have full knowledge of the nature and effect thereof, and shall make no objection or requisition in respect thereof.

In effect this clause is the same as cl 15 of the (Revised) Singapore Conditions of Sale, which have since been replaced by the said Law Society`s Conditions of Sale on 1 January 1981.

Clause 5 of the said option provides that:

The sale is subject to the purchaser receiving satisfactory answers to all requisitions (whether on title or to the city authorities) and in the event of any of the answers to such requisitions being unsatisfactory, the purchaser may annul the sale in which event the deposit paid shall be refunded to the purchaser without any recourse.

On 8 January 1983 a legal requisition in the form commonly used by solicitors in Singapore was sent to the Development Control Division by the purchaser`s solicitors. On the 4 February 1983 the answers to the said legal requisition were received.

Arising out of the answers to legal...