FAQs for Event and Tourism-Related Contracts

Event or tourism-related contracts

Important Note: The Ministry of Law intends to extend the prescribed period for event or tourism-related contracts has been extended from 19 October 2020 to 31 December 2020. The extension of the prescribed period will provide individuals and businesses who have booked events or tours in late 2020 and 2021 with more time to monitor the COVID-19 situation and discuss with their vendors whether and how they should proceed, before deciding if they need to rely on reliefs under the Act. Please refer to this press release for more information.

General FAQs

1. What is an event contract?

• An “event contract” is a contract for the provision of a venue, accommodation, amenities, transport, entertainment, catering or other goods and services for an event, such as a business meeting, conference, wedding, etc.

  • E.g. contract with hotel for a wedding banquet, contract for photography services or make-up services for a wedding, contract for tickets to a concert or show or sporting event.

• The event contract must be governed by Singapore law.

2. What is a tourism-related contract?

• A “tourism-related contract” is a contract –

  • For sea or land travel (e.g. cruises);

  • For the provision of transport, short-term accommodation, entertainment, dining, catering, tours or other tourism-related goods or services for visitors to Singapore, domestic or outbound tourists; or

  • For the promotion of tourism in Singapore or the distribution of products related to tourism for the purposes of trade or retail

• A tourism-related contract does not include a contract for air travel such as airline tickets.

• The tourism-related contract must be governed by Singapore law.

3. Does the Act apply to my event or tourism-related contract?

• The Act applies to event or tourism-related contracts if:

  • The contract was entered into before 25 March 2020;
  • The contractual obligation is to be performed on or after 1 February 2020 (e.g. the wedding banquet was to be provided on 14 April 2020);* • Please take note that in order for the relief measures to apply, the Notification for Relief has to be served by the end of the prescribed period (i.e. 31 December 2020).

• Should the parties be unable to reach a resolution by themselves after the Notification for Relief is served, an application for an Assessor’s Determination in relation to an event or tourism-related contract has to be filed by 28 February 2021. COVID-19 (e.g. wedding could not be held on 14 April 2020 because of the “circuit-breaker” measures).

• You will need to serve a Notification for Relief on the other party to the contract to enjoy the reliefs under the Act. Please refer to FAQ (6) below

4. Does the relief under the Act only apply to an event or tour that is held / to be held on or before 31 December 2020? Do the relief measures under the Act apply to events or tours after 31 December 2020?

• The relief measures under the Act apply to any event or tour that can be shown to be affected materially by COVID-19, regardless of whether the event is before or after 31 December 2020.

• Please take note that in order for the relief measures to apply, the Notification for Relief has to be served by the end of the prescribed period (i.e. 31 December 2020).

• Should the parties be unable to reach a resolution by themselves after the Notification for Relief is served, an application for an Assessor’s Determination in relation to an event or tourism-related contract has to be filed by 28 February 2021.

5. What reliefs under the Act are applicable to me?

• If you are unable to carry out your contractual obligation due to COVID-19, the other party to the contract cannot take or continue legal action against you in respect of that obligation during the prescribed period (i.e. up to 31 December 2020).

• Further, if the Act applies to your contract, the deposit you have placed with the vendor for that contract cannot be automatically forfeited. If a deposit has purportedly been forfeited, it must be restored.

  • This does not mean that you are automatically entitled to cancel the contract, nor does it mean that deposits will be automatically refunded to you.

  • Instead, we encourage you to discuss with the vendor and work out an arrangement which is mutually acceptable. For example, you may agree to hold your event after the COVID-19 pandemic, in which case the vendor has no reason to forfeit the deposit. In this case, the deposit will remain with the vendor.

  • If you and your vendor cannot reach a resolution, either of you may make an application to the Assessor, who will seek to achieve an outcome that is just and equitable in the circumstances. Please click here for further information on the application process and the relevant forms.

6. What must I do to enjoy the reliefs?

• The reliefs under the Act do not take effect automatically.

• If you qualify for the relief, you need to first serve a Notification for Relief on the other party to the contract, that you wish to seek relief from and all other parties to the contract. Please click here for more information on how to serve the Notification for Relief. You may also wish to refer to FAQ (7) (for consumers) and FAQ (21) (for vendors) below for more information.

• Once the Notification for Relief has been served on the other parties to the contract, the reliefs in FAQ (5) above will apply.

Specific FAQs

I am a consumer in an event/tourism-related contract…

7. Who should I serve the Notification for Relief on?

• You should serve the Notification for Relief on all the other parties to the contract.
• For wedding event contracts, if your partner is also a party to the contract with the vendor, please indicate the particulars of both the vendor and your partner in Part B of the Notification for Relief. A copy of the same Notification for Relief should be served on both your vendor and your partner.

8. What happens if my vendor has already forfeited my deposit before I served a Notification for Relief?

• Once a Notification for Relief has been served, the vendor has to restore your deposit, even if it has been previously forfeited.

• Restoration does not mean that the deposit is paid back to you. It means that the deposit continues to be held by the vendor, pending a mutual agreement on how the deposit is to be dealt with, or a determination by an Assessor if a mutual agreement is not possible.

• This applies to contracts entered into before 25 March 2020, for obligations on or after 1 February 2020. For example, the Act would apply to a contract which you entered into in June 2019 to book a wedding banquet to be held on 20 February 2020.

9. My deposit was forfeited before the Act came into force on 20 April 2020. Do I have any recourse under the Act?

• If the contract was entered into before 25 March 2020, and the event or tour was supposed to be carried out on or after 1 February 2020, but could not be carried out because of COVID-19, your deposit can still be restored.

• You must first serve a Notification for Relief on the vendor. Upon the receipt of the Notification for Relief, the vendor must restore the forfeited deposit as soon as practicable.

• Restoration does not mean that the deposit is paid back to you. It means that the deposit continues to be held by the vendor, pending a mutual agreement on how the deposit is to be dealt with, or a determination by an Assessor if a mutual agreement is not possible.

• However, if you had already cancelled the event or tour, and agreed with the vendor that the deposit (or a part of it) is to be forfeited, your deposit will not be restored.

10. I do not wish to postpone my event or tour, but wish to cancel it.

(i) Does the Act require the vendor to allow my cancellation?

• Whether the event is to be postponed or cancelled are matters for the parties to come to a mutually acceptable agreement on, or, if parties cannot agree, the determination of an Assessor under the Act.
• We encourage parties to be reasonable and to work out a mutually acceptable solution to the contractual issues that have been created by COVID-19.
• If you and the vendor are unable to agree, either of you may make an application to the Assessor. Please click here for further information on the application process and the relevant forms.

(ii) If the event or tour is cancelled, is the vendor required to provide a full refund of the deposit?

• Upon the service of a Notification for Relief, the vendor shall not forfeit any deposit. If the deposit has been forfeited, the deposit must be restored until parties come to an agreement, or if parties cannot agree, until the Assessor makes a determination.
• In many events contracts, the vendor is permitted to forfeit the entire deposit if the event is cancelled. COVID-19 was an unexpected event for vendors and consumers alike. It may be unfair for the usual contract clauses to operate strictly in a situation like this.
• The Act was passed to allow Assessors to consider the positions of both contracting parties and will seek to make a determination that is just and equitable for all parties involved taking into account all the circumstances of the case. The Act therefore does not mandate or require vendors to provide full refunds of deposits. The party who purchased the event or tour should not expect a full refund upon serving a Notification for Relief, but for a determination that is fair to all parties. Please click here for further information if you wish to make an application for an Assessor’s Determination.

(iii) If the event or tour is cancelled, can the vendor charge cancellation fees?

• Under the Act, if you meet the conditions stated at FAQ (3) above, you may have a defence to the imposition of cancellation fees.
• After you have served a Notification for Relief, the cancellation fees may not be payable unless the Assessor determines that the payment of a cancellation fee is just and equitable.
• However, if you already paid the cancellation fees before the Act came into force on 20 April 2020, or before serving the Notification for Relief, the vendor is not obliged to return the paid cancellation fees.

(iv) What will the Assessor determine?

• The Assessor will take into account the positions of both contracting parties (including the financial positions of both parties), and will seek to make a determination that is just and equitable for all parties involved taking into account all the circumstances of the case.
• Possible determinations include that only a part of the deposit is restored or refunded or only a part of the agreed cancellation fee be paid.

11. I wish to postpone my event or tour. Does the Act require the vendor to allow me to postpone my event or tour for a certain period (e.g. 6 months)?

• Whether the event is to be postponed or cancelled, and if postponed, the terms of the postponement (e.g., period of postponement, applicable additional charges), are matters for the parties to come to an agreement on themselves, or, if parties cannot agree, the determination of an Assessor under the Act.
• We encourage parties to be reasonable and to work out a mutually acceptable solution to the contractual issues that have been created by COVID-19.
• If you and your vendor are unable to agree, either of you may make an application to the Assessor, who will seek to achieve an outcome that is just and equitable in the circumstances. Please click here for further information on the application process and the relevant forms.

12. I prepaid for my event or tour. Does the Act apply to prepayments as well?

• It is possible that the prepayment may be considered a deposit for the purposes of the Act. This depends on the terms of your contract. If the prepayment is considered a deposit for the purposes of the Act, the reliefs applicable to deposits will apply (see FAQ (5)).

• If you and your vendor are unable to agree, either of you may make an application to the Assessor, who will seek to achieve an outcome that is just and equitable in the circumstances. This can potentially include a determination that the prepayment is considered a deposit for the purposes of the Act and should be restored, and how it should be dealt with. Please click here for further information on the application process and the relevant forms

13. Are air tickets covered under the Act?

• Air tickets are not covered by the Act. Most airlines have their own refund or cancellation policy. You should check the airline’s refund or cancellation policy.

14. Does the Act cover bookings made on travel intermediaries (e.g. online platforms for hotel/tour bookings)?

• Bookings on travel intermediaries (such as aggregate booking websites) will be covered under the Act if these bookings were made under Singapore law.

• Whether the booking was made under Singapore law depends on the terms and conditions of your booking.

15. My vendor returned my deposit in the form of vouchers. Can I ask for cash instead?

• The Act does not mandate how the deposit should be returned. We encourage you to discuss with your vendor and work out an arrangement which is mutually acceptable.

• If you are unable to agree, either of you may make an application to the Assessor, who will seek to achieve an outcome that is just and equitable in the circumstances. It is possible that the Assessor may determine that giving vouchers rather than cash is a just and equitable outcome.

16. Can I request for detailed grounds for the Assessor’s determination?

• No. Neither the Registry nor the Assessor is required to give detailed grounds for the determination.

17. The vendor did not provide any services to me or show any costs incurred for the event/tour. Why does my determination allow part of my deposit to be forfeited? Can I appeal?

• In many events contracts, the vendor is permitted to forfeit the entire deposit if the event is cancelled. COVID-19 was an unexpected event for vendors and consumers alike. It may be unfair for the usual contract clauses to operate strictly in that context.
• The Act was passed to allow Assessors to consider the positions of both contracting parties and will seek to make a determination that is just and equitable for all parties involved taking into account all the circumstances of the case. The Act therefore does not mandate or require vendors to provide full refunds of deposits. Where applicable, the Assessor will determine that part of the deposit will be refunded, instead of being entirely forfeited by the vendor. This is substantial and significant relief.
• On the other hand, even if the vendor has not incurred specific costs in relation to the event/tour, the vendor may have incurred overheads and other costs in entering into the contract.
• The party who purchased the event or tour should therefore not expect a full refund upon serving a Notification for Relief, but instead expect a determination that is fair to all parties.
• The Assessor’s determination is not appealable.

18. The determination requires the vendor to refund part of the deposit to me. Despite my requests, the vendor has not complied with the determination. What can I do?

• An Assessor’s determination is binding on all parties to the application.
• Under the Act, an Assessor’s determination for the vendor to pay a sum of money to the customer may, with the leave of Court, be enforced in the same manner as a judgment or an order of the court. Please seek legal advice on how you may obtain leave of Court to enforce the determination.
• In addition, if the vendor, without reasonable excuse, fails to comply with an Assessor’s determination to pay a sum of money to you, he is guilty of a criminal offence.
• If the vendor has informed you that he requires time to make payment because of his financial situation, he may write to the Registry to request for an extension of time to make payment. Please see FAQ (24) below.

19. My determination states that the case is not one to which section 5 applies. Does it mean that I do not get my deposit back from the vendor or that the vendor may charge me cancellation fees?

• If the determination states that your case is not one to which section 5 applies, the reliefs that are provided under the Act in relation to forfeiture of deposits and cancellation fees do not apply to you.

• Please seek legal advice on how you may protect your rights under the contract.

20. How does the Frustrated Contracts Act, and a force majeure clause in the event or tourism-related contract interact with the Act?

• The Act does not affect the taking of any action in relation to the Frustrated Contracts Act or a force majeure clause. The Assessors would not determine whether the Frustrated Contracts Act or a force majeure clause applies.
• Where applicable, instead of seeking relief under the Act for the inability to perform a contract, the party may choose to rely on the doctrine of frustration or the force majeure clause in the contract. Please seek legal advice if you wish to rely on the Frustrated Contracts Act or a force majeure clause.

I am a vendor in an event/tourism-related contract…

21. Who should I serve the Notification for Relief on?

• You should serve the Notification for Relief on all the other parties to the contract.
• For wedding event contracts, if both the bride and groom are parties to the contract, please indicate the particulars of both the bride and the groom in Part B of the Notification for Relief. A copy of the same Notification for Relief should be served on both the bride and groom.

22. I am a vendor and I have already provided some services pursuant to the event or tourism-related contract. Must I provide a full refund if I receive a Notification for Relief?

• The Act does not mandate that vendors provide full refunds to the consumers. We encourage parties to discuss and work out an arrangement which is mutually acceptable.

• If parties are unable to agree, either of you may make an application to the Assessor, who will seek to achieve an outcome that is just and equitable in the circumstances. It is possible that if you have incurred expenses for the purposes of the event (e.g. purchasing perishables) or have spent time and resources in procuring the contract or providing services to the customer, an Assessor may determine that it is just and equitable for only part of the deposit be restored or refunded.

23. The customer has served a Notification for Relief on us and indicated that he wishes to cancel the event or tour, and obtain a full refund of the deposit. However, I have already incurred costs for this event or tour. What should I do?

• We encourage you to negotiate and reach a mutually acceptable solution with your customer. You should explain your position to the customer and seek to reach an agreement, including whether the event or tour may be postponed or if the event or tour has to be cancelled, the amount of deposit that may be refunded.
• If you are unable to reach a compromise with your customer, you can make an application to the Assessor. To arrive at an outcome that is just and equitable, the Assessor would consider various factors. You may present evidence of the costs incurred by you for the Assessor’s consideration. Please click here for further information on the application process and the relevant forms.

24. The determination requires me to refund the customer a sum of money by a certain date but I am not able to pay by that date because of my financial situation. Can I apply for an extension of time?

• Section 13A of the Act provides that where a party is required by the determination to make any payment, the Assessor or another Assessor may grant the party an extension of time to make payment. If you are unable to refund the sum to the customer due to your financial situation, you may write to the Registry to request for an extension of time and you should attach supporting documents of your financial situation.

25. The determination allows me to keep part of the deposit and refund the rest to the customer. However, this exceeds the costs that we have incurred for the event or tour. Can I appeal?

• The Act was passed to allow Assessors to consider the positions of both contracting parties. The Assessor will seek to make a determination that is just and equitable for all parties involved taking into account all the circumstances of the case.
• You should submit all relevant evidence for the Assessor’s consideration, including any costs that you have incurred. If not, the determination may not take those costs into account.
• The Assessor’s determination is not appealable.