In contrast with English law, the law in Singapore has long allowed calls on on-demand performance bonds to be restrained on the ground of unconscionability. While this has generally been welcomed by contractors, as they only need to fulfil a lower threshold of unconscionability as opposed to the higher threshold of fraud in restraining calls on such bonds, the tide may be turning in the employers' favour with the recent Singapore Court of Appeal case of CKR Contract Services Pte Ltd v Asplenium Land Pte Ltd and another and another appeal and another matter [2015] SGCA 24. 


The facts of the case are briefly as follows. Asplenium, the developer had employed CKR as the main contractor for the construction of a condominium on Seletar Road for some $88 million for a two-year period from January 21, 2013. 

Contributed by Danna Er, MPillay

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