History of contract law in singapore for historical reasons singapore contract law is based on british common law the strong relationship with british law dates back to 1819 when sir stamford raffles established a port on the island that was to become singapore to help british traders compete with dutch ships in the malay archipelago. As stated by the contract law in singapore a contract is an agreement document between two or more parties whose rights and obligations are stipulated in the contract the rights and obligation of the contract legislation in singapore can vary in accordance to the stipulations of the contract but in all cases they are enforceable by law. A singapore contract law largely based on english contract law 811 contract law in singapore is largely based on the common law of contract in england hence the rules developed in the singapore courts do bear a very close resemblance to those developed under english common law. Therefore contracts signed or performed in singapore may stipulate a foreign governing law for instance an american mnc in singapore may require its singapore employees to sign employment contracts governed by american law in the event of a dispute the parties involved may sue in a court of law to enforce the contract