Singapore Court of Appeal Decides That Contractual Deposits Must Be Reasonable in Amount At The Time Of Contracting, But Need Not Be A Genuine Pre-Estimate Of Loss 21 Nov 2024 In Li Jialin and another v Wingcrown Investment Pte Ltd [2024] SGCA 48, the Court of Appeal clarified and restated the applicable framework to analyse whether a contractual deposit should be upheld and forfeited when the sale and purchase transaction falls through. This update discusses the Court of Appeal’s analysis on the law of deposits and how it is distinct from the rule against penalties, and suggests some practical considerations for commercial parties who agree for a deposit to be paid by one party ahead of completion of the transaction. You may read more here.