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In a recent judgment,the Singapore Court of Appeal (CA) overturned a decision of the Singapore High Court (HC)2 and held that the ambiguity in certain contractual terms, which concerned the payment of incentive compensation to an ex-employee, was to be construed in favour of the employer. Importantly, the CA provided guidance on various fundamental issues regarding the nature of contractual ambiguity as well as the application of the contra proferentem rule.

1 Hewlett-Packard Singapore (Sales) Pte Ltd v Chin Shu Hwa Corinna [2016] SGCA 19

2 Corinna Chin Shu Hwa v. Hewlett-Packard Singapore (Sales) Pte Ltd [2015] SGHC 204
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