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Direct answers to common legal questions, followed by the context you need to understand what comes next.
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Disputes
A legal dispute arises when two or more parties disagree over their legal rights or obligations under a contract, statute, or common law, and one party's claim conflicts with another's position.
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The most common business disputes in Singapore involve breach of contract, unpaid invoices or debts, shareholder and partnership disagreements, misrepresentation, and disputes over confidentiality or non-disclosure agreements.
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A contract dispute occurs when one party believes the other has failed to perform their obligations, whether through late delivery, defective goods or services, non-payment, or outright refusal to perform.
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When a contract is breached, the innocent party may be entitled to claim damages, seek specific performance, or in serious cases, terminate the contract altogether.
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Singapore courts can award damages to compensate for financial loss, order specific performance to compel the breaching party to fulfil the contract, or grant an injunction to stop a party from taking a particular action.
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A shareholder dispute is a disagreement between shareholders, or between shareholders and directors, over how a company is being run, decisions on dividends, sale of shares, or breaches of a shareholders' agreement.
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Minority shareholder oppression occurs when majority shareholders or directors run a company in a way that unfairly disregards or harms the interests of minority shareholders, such as excluding them from decisions or diverting company benefits to the majority.
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A minority shareholder who believes they are being oppressed can apply to the High Court under Section 216 of the Companies Act for relief, which may include a buy-out order, an order regulating the company's future conduct, or an order to wind up the company.
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A partnership dispute typically arises from disagreements over profit-sharing, decision-making authority, breach of the partnership agreement, or one partner wanting to exit the business.
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A breach of fiduciary duty by a company director occurs when a director fails to act in the company's best interests, such as by using company property or opportunities for personal gain, failing to disclose a conflict of interest, or acting beyond their authority.
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After 7 years of not paying a debt in Singapore, the debt does not automatically disappear.
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Under the Singapore Limitation Act, a creditor generally has 6 years from the date the debt became due to commence legal action for a breach of contract or an unpaid debt.
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