CHAPTER 1 SOCIETY, BUSINESS & THE LAW

● What is Law?
o A set of rights and obligations in a given society which are enforceable.
o Note: a moral right is not a law – it cannot be enforced.
● Classification of Laws

Civil Law Criminal Law

● Law between individuals ● Wrongs in society

Case Law (Common Law) Statutory Law

● Law made by judges ● Law made by parliament

Public Law Private Law

Substantive Law Procedural Law
● Cases

Civil Case Criminal Case

● Plaintiff is the person suing ● Public Prosecutor is the person suing

● Defendant is the person sued ● Accused is the person sued
● Purpose is to seek a remedy for a private wrong ● Purpose is to punish the perpetrator of the crime,
to deter others from committing the same crime

RATIO DECIDENDI

● Ratio decidendi
o Means “reason for the decision”
● Used in common law
o Applies inductive reasoning, which is to draw generalised conclusions based on a finite collection of facts
▪ “All of the ice we examined is cold, therefore all ice is cold.”
▪ Suggests truth but does not ensure it.
o Note: deductive reasoning is to say that the conclusion is true provided that the facts are true
▪ “He eats bananas, monkeys eat bananas. Therefore he is a monkey.”
▪ Deductions may be valid but may not be sound.
● Principle or rule of law which forms the basis of the decision for the judge.
o Entails a binding authority, where all future courts must follow.
o Refer to the doctrine of Stare Decisis (p3).

DETERMINING THE RATIO OF A CASE

● Steps to use:
1. Understand the facts
2. Extract only material facts
3. Decision based on the material facts

EXAMPLE OF ENTORES LIMITED V MILES FAR EAST CORP.

● Problem
o There is different jurisdictions in different countries
o So where is the contract made?

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 ● Material Facts
o An English coy is suing a Dutch coy to recover damages for a breach of contract made within the jurisdiction of
the English law.
o Miles, a Dutch coy based in Amsterdam made an offer through telex. ( Not material fact)
o Entores, an English coy, counter-offered at a cheaper price.
o Dutch coy accepted the offer. Hence a contract is formed.
o No doubt the English coy received the Dutch coy’s telex of acceptance.
o The contract is made at the place where acceptance is received, made in England.
▪ Note: this is not the ratio
● Decision on material facts, the ratio decidendi
o A contract entered into by instantaneous communications is completed when acceptance is received by the
offeror & contract is made at the place where the acceptance is received.
o We can also argue that the use of instantaneous communications is too wide when context of case is based on
telex only
▪ Alternative ratio is: A contract entered into by telex is completed when acceptance is received by the
offeror & contract is made at the place where the acceptance is received.
▪ Here, the ratio is narrowed down and less future cases will be bound by it.
o Lawyers will construct different ratios to skew future cases to their favour.

OBITER DICTA

● A passing observation based on opinion or hypothesis. A chance remark.

o Usually identified by using words “suppose”, “assume”, “for example”
● Used in common law
● Not binding but only persuasive authority
o Future courts may or may not follow
o Obiters may turn into a ratio in future courts
● An obiter’s persuasiveness is based on:
o Hierarchy of Court
▪ The higher the court, the more the strength of the obiter is
o Reputation of Judge
o Rigour of Analysis
▪ How sound the reasoning is

APPLYING OBITER DICTA IN FUTURE COURT DECISIONS

EXAMPLE OF ENTORES LIMITED V MILES FAR EAST CORP.

● Question
o Instead of contracting by telex, email is used instead.
o Would the ratio and obiter of Entores be relevant in helping a future court reach its decision?
● Relevant Obiters
o When an offeree reasonably believes that his acceptance by telex has been recovered but the offeror, though
no fault of his, does not receive the telex of acceptance then there is no contract.
o Where an offeree reasonable believes that acceptance by telex has been received but offeror through his own
fault does not receive the telex, there should be a contract (Estoppel – Prevented from denying)
● For the plaintiff
o Email is a form of instantaneous communication. There is no real time lag.
o Therefore we are bound by Entores’ case and should apply Entores’ ratio in this court, and subjected to
exceptions based on the obiters mentioned in Entores.
o Entores can claim damages based on English law, since contract is made in England.
● Against the plaintiff
o Email is not instantaneous. It may sit in the inbox for days. (The term “received” is not defined.)

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 o Therefore Entores’ ratio regarding instantaneous communications is not applicable in this court.
o Postal rule should be applied instead: time of acceptance.

THE JUDICIARY IN SINGAPORE

Privy Council

- Adapted from English courts

- Currently abolished

Court of Appeal Consists of

- Highest court, except for the presidential plea - Chief Justice: CJ Chan Sek Keong
- Justice of Appeal: Justice Andrew Phang

Function of the Court of Appeal

- Appellate jurisdiction
- Hears cases from the high court

High Court Consists of

- Note: Court of Appeal + High Court = Supreme Court - Justice

- Judicial Commissioner
Function of the High Courts
- Cases which are over the cap of the Sub Courts are
started at the high courts
- Appellate jurisdiction as well, it hears cases from the
Sub Courts.

Subordinate Courts Courts with limits in its hearings

- District Courts - District Court can hear cases involving up to $250k in

- Magistrates’ Courts dispute, maximum punishment does not exceed a
- Juvenile Courts (Handles cases involving juveniles) 10yrs jail or a fine.
- Family Courts (Spousal violence, Women’s Charter) - Magistrate Courts’ monetary limit is $60k, and max
- Coroner’s Courts (Related to unnatural deaths) punishment is 3yrs.
- Small Claims Tribunals (Deals with claims up to $10k
in relation to contracts of sale of goods and services)

DOCTRINE OF STARE DECISIS

● “Let the decision stand”

o Once a decision/precedent on a certain set of fact has been made, another court of the same rank or lower
must apply that decision in cases presenting the same or similar set of facts.
● The precedent becomes binding and must be followed by courts of the same rank and below.
● Vertical Stare Decisis: Courts below that of the precedent is bound by the precedent.
o Court of Appeal, being the highest court, is not bound by Vertical Stare Decisis
o High Court is bound by Court of Appeal
o Sub Courts are bound by Court of Appeal and High Court
● Horizontal Stare Decisis
o Court of Appeal not bound by its own decisions
▪ But usually follow prior decisions for consistency and certainty.
o High Courts and Sub Courts are not bound by own decisions

SINGAPORE CONSTITUTIONAL STRUCTURE

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Doctrine of Separation of Powers
● Divides the government in 3 branches:
o Legislature makes the laws
o Executive runs the nation
o Judiciary interpretes the law
● Powers and functions are separate
from each other, no single agency is
able to exercise complete authority on
its own.

o Prevents absolutisms
(Monarchies or Dictatorships)
o Prevents corruption
o Acts as checks and balances on each other
▪ Each branch’s independence helps keep others from exceeding their power

PARLIAMENTARY PROCESS OF LAW MAKING

1. First Reading of Bill

- Introduced and not read out in full
- No discussions take place here

2. Second Reading - General principles of the Bill are debated

3. Third Reading - Minor amendments are made

4. Passed by Parliament - Parliament votes on the Bill

5. Passed through the Presidential Council of Minority - Bills which affect race or religious matters are referred
Rights to the PCMR.

6. Presidential Assent - If PCMR’s report is favourable, Bill is presented to the

President for his assent.

7. Gazetted
- Bill becomes Act of Parliament
- Published in the Government Gazette

STATUTORY INTERPRETATION

Objective is to ascertain the spirit and intention of Parliament

● Literal Rule
o If words in the statute are clear, no ambiguity, give the words its natural meaning.
● Golden Rule
o If words in the statute lead to a result that is absurd when given its plain, literal meaning, the Court would
have to look at the intention of Parliament.
o Apply the golden rule based on the Parliament’s intention
o Note: even if Parliament’s intention is absurd, then the correct interpretation is absurd as well.
● Mischief Rule
o If words in the statute are ambiguous, the Court would have to examine the mischief that the statute was
intended to remedy

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 Smith v Hughes (1060) Statute made it an offence to loiter or solicit in the streets for the purposes of prostitution. D
called to men in the street from balconies and tapped on windows.
Held: Mischief rule is applied as the purpose of the statute is to prevent prostitution.

● Ejusdem Generis
o When words in a statute contain specific words followed by general words, the general words should be
interpreted from the same kind or common ground as the specific words.
o “…cars, lorries, buses and any other such vehicles” Consider trucks, maybe motorcycles, but not aeroplanes
and ships.

S9(A) OF INTERPRETATION ACT: USE OF EXTRINSIC MATERIALS

● General rule: Courts must exercise Rule of Exclusion under the Doctrine of Separation of Powers
o Judge cannot refer to the parliamentary debate to make court decisions
o Doing so is to step over their Judiciary authority into the Parliamentary, which is illegal
● Exception: Extrinsic materials (such as parliamentary debates) may be considered
o To confirm the meaning of a statute
o To ascertain the meaning of the statute when the words are ambiguous (Mischief Rule) or when the ordinary
meaning leads to a result that is absurd (Golden Rule).