Tan

Soh

Huat

Pte Ltd ("TSH")

was a major supplier of

dried

shitake mushrooms

to

Chinese restaurants in

hotels in

Singapore.

On 2 Mar 2020, it

entered into a contract

to buy 200 kilogrammes

of premium grade

dried

shitake mushrooms from Shanghai

Green Food Co Ltd ("SGFC") for delivery on

30

Apr 2020.

The contract was governed

by the laws of Singapore.

Under the terms of the contract dated 2 Mar 2020, TSH

had

paid a deposit of

$

2

0,000.00 to S

GFC.

The contract also contained the following terms:

12.1 Neither the Seller nor the Buyer shall be held liable for failure or delay in the

performance of its obligations under this Contract if such performance is delayed

or hindered by the occurrence of

an unforeseeable act or event which is beyond the

reasonable control of either party ("Force Majeure Events").

12.2 Acts or events constituting Force Majeure Events shall include, but not limited

to Act of God, government intervention, directives or polici

es.

12.3 The party affected by a Force Majeure Event shall notify the other as soon as

soon as reasonably practicable after commencement of a Force Majeure Event.

On 24 Mar 2020, the Government of Singapore imposed a ban on social gatherings

of more than 1

0 people outside work and school commencing on 27 Mar 2020. Mass

events and conferences, as well as wedding banquets, had to be cancelled or deferred.

Further

,

o

n 3 Apr 2020

,

the Government of Singapore announced that it would be

2

implementing an elevated set of safe distancing measures, as a circuit breaker to pre

-

empt the trend of increasing local transmission of COVID

-

19. As a result, with effect

from 7 April 2020, all restau

rants, hawker centres, coffeeshops, food courts and other

food and beverage outlets would remain open only for takeaway or delivery.

As soon as the news broke out on 24 Mar 2020, TSH was

informed

by many Chinese

restaurants

that

they would be either cancel

ling or reducing their orders for

dried

shitake mushrooms. This was because the restaurants anticipated that their business

would drop sharply since the large scale dinners could not be held.