Min Jian Chan

This is an Insight article, written by a selected contributor as part of GAR's co-published content. Read more on Insight Form of awards Under section 38(1) of the Arbitration Act (Cap. 10) (AA) or article 31(1) of the UNCITRAL Model Law on International Commercial Arbitration 1985 (the Model Law), which is given the force of law in Singapore under section 3(1) of the International Arbitration Act (Cap.

Key takeaways The COVID-19 pandemic, Western sanctions on Russian companies and goods, and price volatility have caused a sharp increase in both the number and value of disputes in the energy and commodities sectors. The shift towards cleaner energy has changed the nature of disputes in these sectors, with a notable increase in performance related disputes arising under LNG sale and purchase transactions.

Key takeaways The Singapore Court of Appeal (CoA) has clarified the scope of the "Fraud Exception" to the autonomy principle for payments under letters of credit (LCs). This principle typically obliges banks to honour LCs as long as the presented documents comply with the credit's terms, regardless of any disputes under the underlying sale contract. However, the Fraud Exception allows banks to refuse payment if fraudulent documents are presented.