Elvira owns a fashion shop on Orchard Road in Singapore selling expensive women's and

men's clothing. In 2020, she decides to export so-called 'Elephant Leather' pants ('EL

pants') from a supplier in Los Angeles. The name 'Elephant Leather' refers to the fact that

the pants have the look and texture of elephant hide. They are not made from elephant

hide: they are manufactured in the United States from a synthetic material.

The contract between Elvira and the supplier Winston states that the applicable law for

determining any disputes under the contract will be that of the Republic of Singapore. The

forum for disputes will also be Singapore. When a shipment of the EL Pants arrives in

Singapore it is examined by Singapore Customs officers who are concerned about

references in the accompanying documentation to 'elephant leather'. The officers decide

that the pants are made of elephant leather. Singapore law requires that any product made

from any protected animal species - including African elephants - must be impounded by

Customs and subsequently destroyed.

When informed that she is under Customs investigation for importing a prohibited product

Elvira instantly calls Winston and tells him that she is terminating the contract and will

require him to pay damages. The Customs Office impounds the consignment of EL pants

and is about to begin its investigation of Elvira when the Covid-19 outbreak causes the

Government to enforce so-called 'lockdown' in Singapore. Most government and

commercial activities are suspended for the period of lockdown.

During lockdown, the warehouse in which Singapore Customs has impounded the EL pants

consignment burns down. All things stored in the warehouse, including the EL pants

consignment, are destroyed by the fire. A Customs officer informs Elvira that prior to

lockdown, an expert consultant had examined the EL pants and informed Customs that

they were made from legal synthetic material and not elephant hide.

The officer says that Customs will not investigate Elvira and that Customs is not liable for

the loss of the EL pants consignment. Elvira informs Winston that she will not be pursuing

a contractual claim against him. Winston informs her that he is now going to sue her in a

Singapore court for what he says is her unjustified repudiation of contract. He says that he

expects that the court will make an award in his favour. He says that Elvira's previous

decision to terminate the contract is going to cost her a great deal of money as she will have

to pay a large amount of damages.

Advise Elvira whether:

a)

Winston is likely to succeed in his claim for damages?

(10 marks)Final Exams SP51, 2021

BU1112 Business Law

b)

Any doctrine of contract law can be relied upon by Elvira to enable to avoid liability

for alleged breach of contract?

(5 marks)

c)

Whether Elvira can make a claim against Customs for breach of contract (and

whether Customs is also entitled to rely a contract law doctrine to avoid liability)?

(5 marks)