Legal term for payments in Singapore

No, there are none. The payment term of a contract is agreed between the contracting parties. 

No, there is no standard payment term under Singapore law. Payment terms are based on the relevant contractual provision agreed between the payor and payee. 

In some types of contracts, certain types of payment terms are not enforceable (e.g. “pay when paid” clauses in construction contracts, where a contractor only commits to paying his subcontractor if he is paid by his employer). Typically, a payment term is drafted by reference to a specific time period (e.g. 30 days from date of receipt of invoice).

The Sale of Goods Act (Cap. 393) also references the payment obligation on a buyer to pay for goods delivered in accordance with the terms of the contract of sale (s. 27). Unless otherwise agreed, delivery of goods and payment of the price are concurrent conditions (s. 28), so if no payment term is agreed, then the payment obligation will arise at the point of delivery of the goods purchased.

As there is no legislation setting out a standard payment term in Singapore, contracting parties are free to negotiate the payment term of each contract. 

N/A

In the event a contractually agreed payment term is breached, the payee may claim against the payor in court for breach of contract. There may be other sector-specific remedies for breach of a contractual payment term, e.g. availability for fast track adjudication for interim payments under the Building and Construction Industry’s Security of Payment Act (Cap. 30B).

An unpaid seller of goods (i.e. if a purchaser of goods has not paid the purchase price in accordance with the contractually agreed payment term) has certain rights under law, such as a right of re-sale, a right to retain the goods for the price while he is in possession of them, right to withhold delivery, etc. (s. 39, Sale of Goods Act (Cap. 393)).

Finally, in the event a sum of S$15,000 or above that is due and payable under a contract is not paid for 21 days after a statutory demand is served on the payor to make payment for debts owing, the payee is entitled to make a bankruptcy application against the payor for debts owing and unpaid (s. 62, Bankruptcy Act (Cap. 20), s. 312, Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018)).

Yes, the COVID-19 (Temporary Measures) Act 2020 was passed in April 2020 by the Singapore government to provide temporary and targeted protection to businesses and individuals who are in financial distress. 

Under the new law, temporary relief is granted to parties who are unable to perform their obligations (including payment obligations) under one of the “scheduled contracts” due to the COVID-19 pandemic or any law, order or direction made because of COVID-19.

For more information, please visit our update on the COVID-19 (Temporary Measures) Act 2020 here.