One of the main criticisms of the recognition of a general duty in good faith is its contradiction with the promotion of the intrinsic interest inherent in contract law. However, cooperation between the parties in the implementation of a contract is of fundamental importance in this legal area1.15 It has been found that the usefulness of contractual agreements to promote self-interest is conditional on the parties not engaging in bad faith behaviour. This is confirmed by the need for principles such as misrepresentation and inappropriate influence, which are primarily designed to mitigate the problems of injustice resulting from undesirable behaviour. Therefore, the promotion of self-interest and the notion of good faith should not be considered antithetical to each other, since the parties would continue to be allowed to serve their own interests until they engage in bad faith and undermine the common purpose of the bargain they conclude. 8.8.4 First, the parties are free to enter into a contract, so that they are free to negotiate among themselves to free themselves from the obligations of that treaty. Such an agreement could, for example, have been incorporated into the original contract if the parties agree that their initial agreement may be limited by termination or after a certain period of time has expired. In addition, the contracting parties can waive the obligations of the original contract by entering into a subsequent release agreement. While each party is still subject to contractual obligations that have not yet been fulfilled, the reciprocal release of its outstanding obligations under Singapore law is generally effective, with no other formalities or consideration required. However, if the party to whom the undertaking in question is due does not have outstanding undertakings under the original contract, the party wishing to be exempted from that obligation must pay some sort of valuable consideration in exchange for the release. Alternatively, sealed release must be executed to be effective. Singapore allows the parties to choose what will be the legislation in force in their treaty. It is therefore possible to accept that a foreign law regulates your agreement in Singapore, but this is not advisable. Singapore allows you not to choose where you will challenge your contractual dispute.
A contract governing a transaction in Singapore must be negotiated in Singapore. Since Singapore`s judges and mediators are most familiar with their country`s law, it is a good idea to use Singapore as the right choice for contracts related to your activities in Singapore. Given the benefits of Singapore`s contractual laws, it may be helpful to use Singapore as existing legislation, even outside Singapore. Nor can an incomplete agreement be an enforceable contract. “Contract-related” agreements may be considered incomplete if the parties` intention, established on the facts, is not legally bound until a formal document is executed or pending another agreement.