Singapore Contracts Act

The Singapore Contracts Act: Everything You Need to Know

In Singapore, the law governing contracts is the Singapore Contracts Act (SCA). This act is a crucial part of the legal framework in Singapore, as it sets out the necessary requirements for a legally binding contract to be formed.

What is a Contract?

A contract is an agreement between two or more parties that creates legally binding obligations. Contracts can be written or oral, and they can be formed between individuals, businesses, or other entities. Contracts are a fundamental part of commerce, and they can cover a wide range of transactions, from the sale of goods to the provision of services.

Formation of a Contract

To be legally binding, a contract must have the following elements:

1. Offer: An offer is a clear statement of the terms of the contract. It must be made with the intention to create a legal relationship.

2. Acceptance: Acceptance is the agreement to the terms of the offer. It must be communicated to the offeror and must be unconditional.

3. Consideration: Consideration refers to something of value that is exchanged between the parties. This can be money, goods, or services.

4. Intention to create a legal relationship: The parties must have the intention to create a legally binding agreement.

If all of these elements are present, a contract will be formed, and each party will have legally enforceable obligations.

Breach of Contract

If one party fails to fulfill their obligations under the contract, this is known as a breach of contract. The injured party can seek damages from the party in breach to compensate for any losses incurred.

The SCA provides specific remedies for breach of contract, including specific performance (where the court orders the party in breach to fulfill their obligations), damages, and injunctions.


The Singapore Contracts Act is a crucial part of the legal framework in Singapore. It provides clear guidelines for the formation and enforcement of contracts, ensuring that businesses and individuals can enter into agreements with confidence. If you are entering into a contract in Singapore, it is essential to understand the requirements of the SCA to ensure that your agreement is legally binding and enforceable.