Mediated settlement agreements (MSAs) are becoming more popular in Singapore due to its effectiveness in resolving disputes between parties in a timely and cost-efficient manner. However, the question arises whether these MSAs can be enforced overseas.
The answer is not straightforward. The enforceability of an MSA in a foreign country largely depends on the laws of that country, as well as the terms of the agreement itself. It is important to note that an MSA is not a court order, and therefore, it cannot be directly enforced. However, the parties can still use the MSA as evidence in court to seek enforcement.
In Singapore, MSAs are enforceable under the Mediation Act. The Act provides that an MSA is binding on the parties and can be enforced as a contract. This means that if a party breaches the terms of the MSA, the other party can sue for breach of contract and seek damages.
Overseas, the enforceability of an MSA is governed by the laws of the country where enforcement is sought. Some countries, such as the United States, have laws that recognize and enforce foreign MSAs, provided that certain conditions are met. These conditions include the following:
1. The MSA must be in writing, signed by the parties, and reference the mediation process.
2. The parties must have had an opportunity to seek legal advice before entering into the MSA.
3. The MSA must not be unconscionable or against public policy.
4. The terms of the MSA must be clear and unambiguous.
5. The MSA must not have been obtained through fraud, duress, or other improper means.
Other countries may have different requirements for the enforceability of MSAs. It is therefore important to seek legal advice in the foreign jurisdiction to determine the enforceability of an MSA.
In conclusion, MSAs are a viable option for resolving disputes in Singapore. While they are enforceable in Singapore, their enforceability in foreign countries depends on the laws of those countries. It is important for parties to seek legal advice before entering into an MSA to ensure that it meets the requirements for enforcement both in Singapore and overseas.