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Two Decades of Restraining Unconscionable Calls on Performance Guarantees: From Royal Design to JBE Properties

Kelry C F Loi

(2011) 23 SAcLJ 504

Abstract:
Singapore courts have expressly departed from the English position by recognising unconscionability as a separate ground for restraining a beneficiary from demanding payment under a performance guarantee. The power to issue interlocutory injunctions upon a strong prima facie case of unconscionability is a valuable tool for mitigating the injustice occasioned by abusive calls; but it must be wielded with care so as not to nullify the commercial utility of performance guarantees. The key objections raised against the recognition of unconscionability are addressed herein; yet pragmatic clarification of the core content of unconscionability by the Judiciary is necessary.