Case Study

Before renewing the electricity contract with Sembcorp Power, an email offer of 17.365 cents/kWh, a lower rate than the prevailing regulated tariff, was communicated to Madam Waty one month before the renewal date on 24 June 2021. The offer is valid only when the Customer clicks on a link to accept the renewal effective within seven working days. In addition, a promotion exclusively for NTUC members is eligible for a S$20 bill rebate and S$20 referral bill rebates. Bill rebates will be offset from the Customer monthly electricity bill, excluding Security Deposit and all non-usage related charges. This promotion is valid for online sign-ups only, and it is not valid with other promotions, special discounts, roadshow activations, MyRepublic stores unless otherwise stated. Sembcorp Power referral program is applicable for this promotion. Please visit For Sembcorp Power Full Terms and Conditions.

On the third working day, Madam Waty has decided to accept the offer and renew the contract under the standard Fixed Price Plan with 12 months duration, starting 25 July 2021 to 24 July 2022. Ten days later, a confirmation email with terms and conditions was emailed, indicating that the contract is now legally bound.

The term and conditions contained important information for Madam Waty to take note of, and they are the following:-

1. There will be no one-time registration fee, and 1% late payment charges per month will be applicable on the outstanding amount. An early termination charge of $200.00 (no GST) is also chargeable. A security deposit is not applicable for renewal contracts and existing Sembcorp Power customers. In contrast, non-existing customers are required to provide a security deposit amount as determined by the provider.
2. A contract with an automatic renewal may be automatically renewed upon the expiry of the contract. However, the electricity retailer must inform the Customer at least ten business days before the current contract expiry date for such a contract. The Customer has the right not to proceed with the automatic renewal.
3. Sembcorp Power must ensure that the electricity rate is better than the prevailing regulated tariff at the point of the contract renewal. Within the first 30 calendar days, the customers have the right to terminate the renewed contract from the start of the renewed contract term by giving the electricity retailer at least 30 calendar days' notice without the Customer being subject to any early termination charges or other applicable fees.
4. A monthly invoice will be delivered via electronic mail to the Customer, and the Customer shall pay the total charges stated in the invoice in full on or before the payment due date. All charges are payable by the Customer under the contracted Agreement are exclusive of any duties, fees, Goods and Services Tax (GST) and other applicable tax. If the Customer fails, refuses or neglects to make such payment, the Customer shall pay a late payment charge of S$5.00 per bill. To avoid doubt, the charging of the late payment charge shall not constitute a waiver nor prejudice any other company remedies under this Agreement. In addition, the Customer shall pay Sembcorp Power a fee of S$1.00 for each GIRO instruction rejection.
5. Exclusion and Limitation of Liability.

a) Save as otherwise expressly provided in this Agreement; neither Party shall in any circumstances whatsoever be liable to the other for any loss of profit, loss of revenue, loss of use, loss of contract or loss of goodwill or any indirect or consequential loss. Any statutory or implied conditions and warranties are excluded. The Sale of Goods Act (Cap. 393) is expressly excluded from application to this Agreement.

b) The Company is not liable for any loss, damage, cost, expense, liability or injury whatsoever suffered by or caused to the Home Customer or the Home Customer's property resulting from (i) any planned outage, (ii) unplanned outage, interruption, failure, unreliability, variation, continuity or reduction of the Electricity sold, (iii) Electricity voltage or frequency fluctuation, instability, surge or dip, (iv) defect of whatever nature in the Electricity sold, or (v) any act or omission by any third party (including the Authority, the Market Company, PSO, MSSL or the Transmission Licensee) or (vi) for any other reason whatsoever.

c) Without prejudice to the foregoing, the rights and remedies provided by this Agreement to the Parties are exclusive and not cumulative and exclude and are in place of all substantive rights or remedies express or implied and otherwise provided by common law or statute.

6.Third Party Rights

a) The Contracts (Rights of Third Parties) Act Cap 53B is hereby expressly excluded from application to this Agreement.

Questions

1) Explaintheapplicablelawsandhowtheyapply to the contract described, in respect of the following (a to c). Use the L.A.W method (Law, Application, Wrap-up) to further explain the contract described.

a) Offer andAcceptance,

b) IntentiontoCreateLegal Relations,and

c) Consideration.

2) Description and explanation of TWO (2) express terms and ONE (1) implied term of the contract.

3) Explanationofthekeylearning points from your reflection as well as your insightful views/opinion on the law relating to the formation of contract and on the contract example which you have described.