Abstract:
In Winson Oil Trading Pte Ltd v Oversea-Chinese Banking Corp Ltd [2023] SGHC 220, the General Division of the High Court held that the “Fraud Exception” for refusing payment under a letter of credit is satisfied where a beneficiary makes a false representation recklessly, in the sense of being indifferent as to the truth of the representation. This case note suggests that the court’s conclusion was sound as a matter of principle and explains the practical guidance that parties can derive from the decision.