31 Dec 2020 Posted in Press releases
- The Ministry of Law (“MinLaw”) has further extended the relief period for event and tourism-related contracts under Part 2 of the COVID-19 (Temporary Measures) Act (the “Act”), from 31 December 2020 to 31 January 2021.
- The one-month extension to 31 January 2021 will enable both individuals and businesses to re-assess the COVID-19 situation and re-evaluate their events or tours in light of Phase Three. With Phase Three, there will be more scope to make alternative arrangements and adjustments to the original contract terms. For example, parties to a contract for a large wedding may agree to holding the event on the contracted date but at a smaller scale at an appropriately reduced price. This would be a fair result.
- Parties are strongly encouraged to negotiate the matter if the contracted event cannot proceed due to COVID-19. Parties should only apply for relief under the Act if they are unable to reach an agreement.
- With the extension, Notifications for Relief for event and tourism-related contracts must be served by 31 January 2021 at the latest. After a Notification for Relief is served, deposits paid for events or tours cannot be automatically forfeited. Cancellation fees will only be payable if an Assessor determines it is just and fair to do so. Discussions and negotiations should continue. The intention is to prevent any such forfeiture or cancellation charge from happening, so that parties may focus on discussion, understanding each other’s positions and trying to reach a mutually agreeable compromise on the conduct of the event or tour.
- If an agreement cannot be reached, either party may submit an Application for an Assessor’s Determination up to two months after the end of the relief period, i.e. latest by 31 March 2021. In appropriate cases, Assessors may require parties to attend mediation or explain why an alternative arrangement (e.g. a smaller scale event or a rescheduled event) is not being considered.
- The relief periods for the other scheduled contracts under Part 2 of the Act remain unchanged. (Refer to the Annex for a summary of the relief periods.)
MINISTRY OF LAW
31 DECEMBER 2020
Annex - Summary of the relief periods (59KB)