01⬡ JUDGMENT
Court of Appeal in [2026] SGCA 28 formulates transaction-based test for consideration under claw-back provisions s 73B CLPA and s 438 IRDA
The court clarified that consideration under s 73B of the CLPA and s 438 of the IRDA must be assessed contextually within the parameters of the impugned transaction itself, and must have been within the parties' contemplation at the time of the transaction. Unbargained-for benefits subsequently conferred are irrelevant, and contemporaneity is required. This reformulates how practitioners must analyse adequacy of consideration in claw-back claims.
Why it mattersPractitioners defending claw-back claims must now focus narrowly on what was bargained for at the time of the transaction, not post-hoc justifications or collateral benefits.
JUDICIARY
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