COVID-19 (Temporary Measures) (Temporary Relief for Inability to Perform Contracts) Regulations 2020

Source: Singapore Statutes Online | Archived by Legal Wires


No. S 303
COVID-19 (Temporary Measures) Act 2020
(ACT 14 OF 2020)
COVID-19 (Temporary Measures)
(Temporary Relief for Inability to
Perform Contracts) Regulations 2020
In exercise of the powers conferred by section 19 of the COVID‑19 (Temporary Measures) Act 2020, the Minister for Law makes the following Regulations:
PART 1
PRELIMINARY
Citation and commencement
1.  These Regulations are the COVID-19 (Temporary Measures) (Temporary Relief for Inability to Perform Contracts) Regulations 2020 and come into operation on 20 April 2020.
Definitions
2.  In these Regulations, unless the context otherwise requires —
“CorpPass” means the identity authentication service known as Singapore Corporate Access, by which an entity authenticates its identity in order to carry out an online transaction with the Government or a public body;
“CorpPass credential” means any username, password or 2‑factor authentication detail required to authenticate, using CorpPass, the identity of an entity;
“designated email address”, in relation to a party, means —
(a)in the case of a party who served the notification for relief under section 9(1) of the Act — 
(i)that party’s email address as specified in the notification; or
(ii)if that party has submitted any form to the Registrar or an assessor in relation to an application for an assessor’s determination in which another email address is specified as that party’s email address — that other email address;
(b)in the case of a party who submitted to the Registrar an application for an assessor’s determination —
(i)that party’s email address as specified in the application; or
(ii)if that party has submitted any form to the Registrar or an assessor in relation to an application for an assessor’s determination in which another email address is specified as that party’s email address — that other email address; or
(c)in the case of any other party — the email address designated by that party for the purpose of receiving documents or communications under Part 2 of the Act or these Regulations;
“designated postal address”, in relation to a party, means —
(a)in the case of a party who served the notification for relief under section 9(1) of the Act — 
(i)that party’s postal address as specified in the notification; or
(ii)if that party has submitted any form to the Registrar or an assessor in relation to an application for an assessor’s determination in which another postal address is specified as that party’s postal address — that other postal address;
(b)in the case of a party who submitted to the Registrar an application for an assessor’s determination —
(i)that party’s postal address as specified in the application; or
(ii)if that party has submitted any form to the Registrar or an assessor in relation to an application for an assessor’s determination in which another postal address is specified as that party’s postal address — that other postal address; or
(c)in the case of any other party — the postal address designated by that party for the purpose of receiving documents or communications under Part 2 of the Act or these Regulations;
“electronic system” means the electronic system established under regulation 7;
“issuer of a related performance bond” means the issuer of a performance bond or equivalent for the performance of the subject obligation, where the scheduled contract is a construction contract or a supply contract;
“ordinary address” means —
(a)in the case of a body corporate (including a limited liability partnership) or unincorporated association —
(i)the body corporate’s or unincorporated association’s registered office, or principal office, in Singapore; or
(ii)in the absence of a registered office, or principal office, in Singapore, the body corporate’s or unincorporated association’s last known place of business in Singapore;
(b)in the case of an individual, the individual’s usual or last known place of residence or business in Singapore; or
(c)in the case of a partnership (other than a limited liability partnership), the partnership’s principal or last known place of business in Singapore;
“party”, in relation to an assessor’s determination, means —
(a)the party to the contract who made the application for an assessor’s determination under section 12 of the Act; or
(b)either —
(i)the party to the contract who served the notification for relief on the party mentioned in paragraph (a); or
(ii)the party to the contract who was served with the notification for relief, if the party mentioned in paragraph (a) also served the notification for relief,
and includes a person authorised by that party to represent the party in relation to the determination;
“prescribed mode of service” has the meaning given by regulation 5;
“Registrar’s directives” means directives issued by the Registrar under regulation 29;
“Registry” means the Registry of Assessors established under regulation 27;
“SingPass” means the identity authentication service, known as Singapore Personal Access, by which an individual authenticates the individual’s identity in order to carry out an online transaction with the Government or a public body;
“SingPass credential” means any username, password or 2‑factor authentication detail required to authenticate, using SingPass, the identity of an individual;
“subject obligation” means an obligation under a scheduled contract that a party to it is or will be unable to perform and seeks relief under section 5 or 7 of the Act for the inability;
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“subject right” means a right under a scheduled contract that a party to it is or will be unable to exercise and seeks relief under section 5A of the Act for the inability.
[S 874/2020 wef 09/10/2020]
PART 2
GENERAL MATTERS
Circumstances in which section 5 of Act inapplicable
3.—(1)  For the purposes of section 5(14) of the Act, section 5 of the Act does not apply to a construction contract or supply contract to the extent that it contains provisions under which a party undertakes to carry out construction work, or supply goods or services, as an employee of the party for whom the construction work is to be carried out or the goods or services are to be supplied.
(2)  In paragraph (1) —
“construction work”, “goods” and “services” have the meanings given by section 3 of the Building and Construction Industry Security of Payment Act (Cap. 30B);
“employee” has the meaning given by section 2(1) of the Employment Act (Cap. 91).
Other prescribed actions for section 5(3)(o) of Act
3A.—(1)  The following actions are prescribed for the purposes of section 5(3)(o) of the Act:
(a)the increase of any charges (however described) or interest rate for interest payable under a scheduled contract, except where —
(i)the amount of the increase is specified in the contract or is to be calculated by reference to a formula or other matter (such as a reference rate) set out in the contract;
(ii)the increase relates to a charge that is provided for or permitted in the contract, where such charge relates to recovery of expenses reasonably incurred by the other party to the contract (not being the party who is or will be unable to perform the subject obligation) in the ordinary course of business; or
[S 874/2020 wef 09/10/2020]
(iii)the party who is or will be unable to perform the subject obligation under the contract agrees to the increase;
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(b)the imposition of any new charges under a scheduled contract, except with the agreement of the party who is or will be unable to perform the subject obligation under the contract;
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(c)requiring that any part of a security deposit given pursuant to a scheduled contract be replaced by the party who is or will be unable to perform the subject obligation under the contract, except with the agreement of that party;
[S 874/2020 wef 09/10/2020]
(d)[Deleted by S 874/2020 wef 09/10/2020]
(e)the termination by the housing developer of an agreement mentioned in paragraph 1(j) of the First Schedule to the Act;
[S 874/2020 wef 09/10/2020]
[S 18/2021 wef 14/01/2021]
(f)the termination by the commercial developer of an agreement mentioned in paragraph 1(l) of the First Schedule to the Act.
[S 874/2020 wef 09/10/2020]
[S 18/2021 wef 14/01/2021]
(2)  To avoid doubt, in a case where an action under paragraph (1)(a), (b) or (c) is carried out pursuant to a term in the scheduled contract, the party who is or will be unable to perform the subject obligation under the contract is not considered to have agreed to the taking of the action under paragraph (1)(a)(iii), (b) or (c) merely by being a party to the contract.
[S 874/2020 wef 09/10/2020]
(3)  This regulation does not apply to any thing done before 13 May 2020.
[S 377/2020 wef 13/05/2020]
Prescribed contracts for section 5A of Act
3AA.—(1)  The following descriptions of scheduled contracts are prescribed for the purposes of section 5A(1)(a) of the Act:
(a)an option given by a housing developer to an intending purchaser for the purchase of one or more units of housing accommodation;
(b)an option given by a commercial developer to an intending purchaser for the purchase of one or more units of commercial property.
(2)  In paragraph (1), “commercial developer”, “commercial property”, “housing accommodation”, “housing developer” and “unit” have the meanings given by paragraph 2 of the First Schedule to the Act.
[S 874/2020 wef 09/10/2020]
[S 18/2021 wef 14/01/2021]
Prescribed contracts for section 7A of Act
3B.—(1)  The following descriptions of scheduled contracts are prescribed for the purposes of section 7A(1)(a) of the Act:
(a)a hire-purchase agreement or conditional sale agreement as defined under the Hire-Purchase Act (Cap. 125), where the good hired or conditionally sold under the agreement is —
(i)any plant, machinery or fixed asset located in Singapore, where such plant, machinery or fixed asset is used for manufacturing, production or other business purposes; or
(ii)a commercial vehicle,
but does not include an agreement that is entered into with a bank licensed under the Banking Act (Cap. 19) or a finance company licensed under the Finance Companies Act (Cap.  108);
(b)a lease of —
(i)any plant, machinery or fixed asset located in Singapore, where such plant, machinery or fixed asset is used for manufacturing, production or other business purposes; or
(ii)a commercial vehicle, except —
(A)a private hire car as described in the Second Schedule to the Road Traffic Act (Cap. 276); and
(B)a taxi as described in the Second Schedule to the Road Traffic Act;
(c)an event contract;
(d)a tourism-related contract;
(e)a construction contract or supply contract;
(f)an agreement between a housing developer and a purchaser for the sale and purchase of one or more units of housing accommodation;
[S 874/2020 wef 09/10/2020]
(g)an agreement between a commercial developer and a purchaser for the sale and purchase of one or more units of commercial property.
[S 874/2020 wef 09/10/2020]
(2)  In paragraph (1), “commercial developer”, “commercial property”, “commercial vehicle”, “housing accommodation”, “housing developer” and “unit” have the meanings given by paragraph 2 of the First Schedule to the Act.
[S 874/2020 wef 09/10/2020]
[S 665/2020 wef 31/07/2020]
[S 18/2021 wef 14/01/2021]
Prescribed rate for section 7A(2) of Act
3C.—(1)  For the purposes of section 7A(2) of the Act, the total sum of the interest and other charges (however described) must not exceed the amount equal to 5% per annum on the outstanding sum that is due and payable under the contract.
(2)  For the purposes of paragraph (1), the outstanding sum mentioned in that paragraph does not include any late payment interest, or late payment charges, added to the outstanding sum on or after 1 February 2020.
[S 665/2020 wef 31/07/2020]
Prescribed condition for section 7B(2)(b) of Act
3D.  For the purposes of section 7B(2)(b) of the Act, the prescribed condition is that the lessee or licensee could not, by taking reasonable steps, have avoided the subject inability.
[S 665/2020 wef 31/07/2020]
Prescribed amount for section 7B(2) of Act
3E.—(1)  For any period the subject inability subsists that falls between 7 April 2020 and 18 June 2020 (both dates inclusive) (called in this paragraph the relevant period), the prescribed amount for the purposes of section 7B(2) of the Act is as follows:
(a)in respect of any period in the relevant period, where the lessee or licensee carried on its business, undertaking or work at the property (called in this paragraph the operating period) — the lower of the following:
(i)the amount payable by the lessee or licensee under the lease or licence for the subject inability for the operating period;
(ii)at the option of the lessor or licensor, either —
(A)the rent payable by the lessee or licensee for the operating period, as if the lease or licence were in force during that period based on the last rent payable; or
(B)the market rent of the property for the operating period;
(b)in respect of any other period in the relevant period — an amount equal to the total amount of service charge, maintenance charge and public utility charge payable under the lease or licence for that other period, as if the lease or licence were in force during that other period.
(2)  For any period the subject inability subsists that does not fall between 7 April 2020 and 18 June 2020 (both dates inclusive) (called in this paragraph the relevant period), the prescribed amount for the purposes of section 7B(2) of the Act is as follows:
(a)in respect of any period in the relevant period, where the lessee or licensee carried on its business, undertaking or work at the property (called in this paragraph the operating period) — the lower of the following:
(i)the amount payable by the lessee or licensee under the lease or licence for the subject inability for the operating period;
(ii)at the option of the lessor or licensor, either —
(A)the rent payable by the lessee or licensee for the operating period, as if the lease or licence were in force during that period based on the last rent payable; or
(B)the market rent of the property for the operating period;
(b)in respect of any other period in the relevant period — the lower of the following:
(i)the amount payable by the lessee or licensee under the lease or licence for the subject inability for that other period;
(ii)at the option of the lessor or licensor, either —
(A)50% of the rent payable by the lessor or licensee for that other period, as if the lease or licence were in force during that other period based on the last rent payable; or
(B)50% of the market rent of the property for that other period.
(3)  For the purposes of paragraphs (1)(a) and (2)(a), the carrying on of any business, undertaking or work by the lessee or licensee at the property does not include the carrying on of any activity by the lessee, licensee, or any other person, for the purpose of maintaining the property —
(a)in a clean and sanitary condition; or
(b)in a state of good repair.
(4)  In this regulation —
“rent” means the total amount payable by a lessee or licensee for the lease or licence of the property, including any service charge, maintenance charge and public utility charge;
“subject inability” means the subject inability mentioned in section 7B(1)(b) of the Act.
[S 665/2020 wef 31/07/2020]
Prescribed contracts for sections 12(4) and 13(1A) of Act
3F.—(1)  The following descriptions of scheduled contracts are prescribed as scheduled contracts to which sections 12(4) and 13(1A) of the Act apply:
(a)a contract for the grant of a loan facility by a bank licensed under the Banking Act or a finance company licensed under the Finance Companies Act to an enterprise, where such facility is secured, wholly or partially, against any commercial or industrial immovable property located in Singapore;
(b)a contract for the grant of a loan facility by a bank licensed under the Banking Act or a finance company licensed under the Finance Companies Act to an enterprise —
(i)where such facility is secured, wholly or partially, against any plant, machinery or fixed asset located in Singapore; and
(ii)where such plant, machinery or fixed asset (as the case may be) is used for manufacturing, production or other business purposes;
(c)an agreement between a housing developer and a purchaser for the sale and purchase of one or more units of housing accommodation;
(d)an agreement between a commercial developer and a purchaser for the sale and purchase of one or more units of commercial property.
(2)  In paragraph (1), “commercial developer”, “commercial property”, “enterprise”, “housing accommodation”, “housing developer” and “unit” have the meanings given by paragraph 2 of the First Schedule to the Act.
[S 22/2021 wef 15/01/2021]
Forms and documents
4.—(1)  The forms to be used for the purposes of these Regulations are those set out on the Internet website at http://www.mlaw.gov.sg/covid19-relief, and any reference in these Regulations to a numbered form is a reference to the current version of the form bearing the corresponding number that is displayed at that website.
(2)  Every form to be served on any party or submitted to the Registrar or an assessor making a determination must —
(a)contain such particulars;
(b)comply with such requirements; and
(c)be accompanied by such documents,
as may be specified —
(d)in the form;
(e)by the Registrar or the assessor; and
(f)in the Registrar’s directives,
whichever is applicable.
(3)  Every form or document to be filed with a court must comply with such requirements as may be specified by the court or the registrar of the court.
(4)  Any form may be used in a particular case with such variations as the circumstances of the case may require.
Prescribed mode of service
5.—(1)  In these Regulations, a person (called in this regulation A) serves a document on another person (called in this regulation B) by the prescribed mode of service if —
(a)A sends the document to B’s last email address using the electronic system;
(b)where A is for any reason unable to send the document in the manner described in sub‑paragraph (a) — A sends the document to B’s last email address using any other means;
(c)where A is for any reason unable to send the document in the manner described in sub‑paragraphs (a) and (b), and either —
(i)B has an account for the use of an internet‑based messaging service, and that service provides a mechanism for B to receive electronic communications in that account; or
(ii)B is the owner or operator of an Internet website, a blog or a page on any social media or social networking Internet website, and that Internet website, blog or page on that social media or social networking Internet website provides a mechanism for B to receive electronic communications on that Internet website, blog or page on that social media or social networking Internet website,
and the mechanism in sub‑paragraph (i) or (ii) is the means or one of the means by which A corresponds with B on matters concerning the scheduled contract in question — A sends an electronic communication of that document to B using that mechanism; or
(d)where A is for any reason unable to send the document in the manner described in sub‑paragraphs (a), (b) and (c) — A sends the document to B’s last postal address by prepaid registered post.
(2)  In paragraph (1) —
“document” includes a form;
“last email address” means —
(a)B’s designated email address; or
(b)if B has no designated email address — an email address by which A corresponds with B on matters concerning the contract in question, or (if there is no such email address) an email address which B represents to A or to the public as the email address to which communications to B may be sent;
“last postal address” means —
(a)B’s designated postal address; or
(b)if B has no designated postal address — B’s ordinary address.
When service takes effect and proof of service
6.—(1)  Service of a document on a person takes effect —
(a)if it is sent to an email address — at the time that the document becomes capable of being retrieved by the person; or
(b)if it is sent to a postal address by prepaid registered post — on the second day after the day the document was posted (even if it is returned undelivered).
(2)  In proving service of any document sent by registered post to any person, it is sufficient to prove that the envelope containing the document was properly addressed to that person, stamped and posted by registered post.
(3)  In this regulation, “document” includes a form.
Electronic system
7.—(1)  An electronic system is established for the purposes mentioned in paragraph (2).
(2)  The purposes of the electronic system are —
(a)to facilitate the service of a notification for relief under section 9(1) of the Act;
(b)to facilitate the submission of certain forms and documents to the Registrar or an assessor in relation to an application for an assessor’s determination and the proceedings thereto; and
(c)to facilitate the service of certain of those forms and documents.
Use of electronic system
8.—(1)  Subject to paragraph (3), an individual must authenticate the individual’s identity using SingPass in order to access the electronic system to carry out an act involving the individual.
(2)  Subject to paragraph (4), a person who is authorised by an entity to carry out using the electronic system any act involving the entity, must authenticate the entity’s identity using CorpPass in order to access the electronic system to carry out that act for the entity.
(3)  An individual must not facilitate the use, by any other person, of the individual’s SingPass credentials to access the electronic system.
(4)  An entity must not facilitate the use, by any unauthorised person, of the entity’s CorpPass credentials to access the electronic system.
PART 3
NOTIFICATION FOR RELIEF
Notification for relief
9.—(1)  A notification for relief must be in Form 1, and must contain the following information:
(a)the name, address and telephone number, and email address (if any) of the person seeking relief under section 5, 5A or 7 of the Act (called in this Part A);
[S 874/2020 wef 09/10/2020]
(b)the name and address, and (if known to A) the telephone number and email address of each of the following:
(i)the other party or parties to the contract;
(ii)any guarantor or surety for the subject obligation;
(iii)the issuer of a related performance bond, if applicable;
(c)the following information about the contract in question:
(i)the description of scheduled contracts in the First Schedule to the Act to which the contract belongs;
[S 18/2021 wef 14/01/2021]
(ii)the date of the contract;
(d) where A is seeking relief under section 5 or 7 of the Act — the following information about the subject obligation:
(i)the details of the obligation;
(ii)the date the obligation was or is to be performed;
(iii)a brief explanation of how a COVID‑19 event had caused to a material extent the inability to perform the obligation;
[S 874/2020 wef 09/10/2020]
(da)where A is seeking relief under section 5A of the Act — the following information about the subject right:
(i)the details of the right;
(ii)the date the right was or is to be exercised;
(iii)a brief explanation of how a COVID-19 event had caused to a material extent the inability to exercise the right;
[S 874/2020 wef 09/10/2020]
(e)any proposal by A to perform the subject obligation, or to exercise the subject right, in another manner;
[S 874/2020 wef 09/10/2020]
(f)a declaration by A to the effect that all information provided in the notification for relief is true and correct.
(2)  Apart from the persons mentioned in section 9(1)(a) and (b) of the Act, a notification for relief must be served on an issuer of a related performance bond, if applicable.
(3)  A notification for relief must be served by the prescribed mode of service —
(a)on the other party or parties to the contract — before the end of the prescribed period; and
(b)on the surety or guarantor for the subject obligation and the issuer of a related performance bond (if applicable) — no later than one working day after the date of service of the notification on the person mentioned in sub‑paragraph (a).
(4)  Where A is aware that proceedings against A or A’s guarantor or surety in relation to the subject inability were pending in a court or an arbitral tribunal at the time the notification for relief was served, and A wishes to lodge a copy of the notification for relief with the court or arbitral tribunal, A must after service of the notification for relief, file with the court, or submit to the arbitral tribunal, before which the proceedings are pending, a memorandum of notification for relief in Form 2 that —
(a)contains —
(i)information identifying the proceedings before the court or arbitral tribunal; and
(ii)a declaration of service of the notification for relief which must state when such service was effected; and
(b)is accompanied by a copy of the notification for relief.
(5)  Where A becomes aware that proceedings against A or A’s guarantor or surety in relation to the subject inability have, after service of the notification for relief in accordance with paragraph (3), been commenced before a court or an arbitral tribunal in breach of section 5(2) of the Act, and A wishes to lodge a copy of the notification for relief with the court or arbitral tribunal, A must file with the court, or submit to the arbitral tribunal, before which the proceedings were commenced, a memorandum of notification for relief in Form 2 that —
(a)contains —
(i)information identifying the proceedings before the court or arbitral tribunal; and
(ii)a declaration of service of the notification for relief which must state when such service was effected; and
(b)is accompanied by a copy of the notification for relief.
(6)  In this regulation, “subject inability” means the subject inability mentioned in section 5(1)(a) of the Act.
[S 874/2020 wef 09/10/2020]
Withdrawal of notification
10.—(1)  A may at any time withdraw the notification for relief by serving a notice of withdrawal in Form 3 on the other party or parties to the contract by the prescribed mode of service.
(2)  A must also serve the notice of withdrawal on the following by the prescribed mode of service no later than one working day after the date of service of the notice of withdrawal on the other party or parties to the contract:
(a)any guarantor or surety for the subject obligation;
(b)the issuer of a related performance bond, if applicable.
(3)  If an application for an assessor’s determination has already been submitted to the Registrar, A must also submit a copy of the notice of withdrawal to the Registrar together with a declaration in Form 4 of service of the notice of withdrawal on the persons mentioned in paragraphs (1) and (2), within 2 working days after the date of service of the notice of withdrawal on the other party or parties to the contract.
(4)  If a copy of the notification for relief has been lodged pursuant to section 5(8) or 8(2) of the Act with a court or an arbitral tribunal before which proceedings were brought, A must, within 2 working days after the date of service of the notice of withdrawal on the other party or parties to the contract, file with the court, or submit to the arbitral tribunal, before which the proceedings are pending, a memorandum of service of withdrawal in Form 5 that —
(a)contains —
(i)information identifying the proceedings before the court or arbitral tribunal; and
(ii)a declaration of service of the notice of withdrawal on the persons mentioned in paragraphs (1) and (2); and
(b)is accompanied by a copy of the notice of withdrawal.
(5)  To avoid doubt, A is not prevented by the withdrawal of A’s notification for relief from serving another notification for relief.
 
Made on 20 April 2020.
LOH KHUM YEAN
Permanent Secretary,
Ministry of Law,
Singapore.
[LAW 63/009 COVID Relief-V1; AG/LEGIS/SL/65C/2020/3 Vol. 1]

Archived for legal research. Authoritative version at sso.agc.gov.sg.