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Editorial

PRE-CONTRACTUAL NEGOTIATIONS AND DRAFTS MAY BE ADMISSIBLE FOR INTERPRETING AMBIGUOUS TERMS

The Singapore High Court has affirmed that pre-contractual negotiations and drafts may be admissible for interpreting latently ambiguous terms in the final contract as long as they: (i) are relevant; (ii) are reasonably available to the parties in the situation in which they were at the time of the contract; and (iii) relate to a clear or obvious context.

This principle is subject to one possible exception: extrinsic evidence that was available to only one party may be used against that party to show its subjective intention, so as to reveal what the objective intention of the parties could not be.

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