Contract renegotiation permitted for businesses hit by COVID-19

Failure to come to a mutual agreement will lead to contract termination.

Small and micro businesses impacted by COVID-19 are now allowed to renegotiate selected types of contracts with their counterparts through the Re-Align Framework, available for six weeks from 15 January 2021, according to the Ministry of Law (MinLaw).

Under the framework, counterparties will have to enter into negotiations over contracts that have been impacted by COVID-19. In the event of unsuccessful negotiations and failure to come to a mutual agreement, the contract will be terminated on just and fair terms in accordance with the framework.

Businesses that garnered less than $30m revenue for FY2019 and saw a 70% YoY fall on monthly average gross income for the second half of 2020 are eligible.

Those eligible that wish to renegotiate their contracts must serve a notice of negotiation, accompanied by relevant documents proving their eligibility, on the other party to the contract by 26 February 2021.

A four-week period will be given to affected business to renegotiate contract terms once the notice is served, with the other parties barred from pursuing related legal actions in the same period.

If a renegotiation is unsuccessful after the four week-period, contract counterparties have another two weeks to object, whilst an independent assessor will be appointed by MinLaw to determine the eligibility of the affected businesses and the parties' obligations upon contract termination.

An assessor’s determinations are binding and not appealable.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The growth was driven by the increase in services inflation.
A new range of collaborative social spaces will make up the structure. 
One measure is the removal of the clickable links in SMSes sent by the bank.
The increase represented increased considerations of 2.1% in cash and 5.8% in shares.
It achieved a 100% sellout in its apartment launches at Yanlord Arcadia.
The institutions will collaborate on payments innovation projects amongst others.
Keppel Corp had the most growth.
It got Asian Infrastructure Investment Bank as its investor.
This optimistic performance is expected to continue until March 2022.
The stock saw a contradicting rise of 51%, despite the STI observing a dip of 4.2% during the period. 
Along with this, the group recommends a green financing bank.
The SGX listed SPAC raised $23.4m from the offering.
They believe crypto's value will increase in the next five years.
ThaiBev had the most growth.