📝 Law of Contract and Law of Agency

1. A seller's listing on a property portal reads: 'Freehold 3-bedroom condominium unit, asking S$1,280,000, negotiable.' In contract law, how is this listing best classified?

1. A unilateral offer accepted by the first buyer to arrange a viewing
2. A firm offer to sell that any buyer can accept at the asking price
3. A binding promise to sell that stays open until the listing is removed
4. An invitation to treat, inviting interested buyers to make offers

Advertisements and listings of property for sale are generally invitations to treat: they invite offers, which the seller is free to accept or reject. The word 'negotiable' confirms that the seller has not committed to sell at the stated price, so the listing is neither a firm nor a unilateral offer. (Common law of offer and acceptance; RES Examination Syllabus 2027, LO 2.1.1)

2. Which of the following best describes a valid acceptance of an offer to sell a property?

1. A request for the seller's latest valuation report before deciding
2. A statement of strong interest that invites the seller to name terms
3. A reply that agrees to the price but proposes a later completion date
4. A final and unqualified assent to all the terms of the offer as made

Acceptance must mirror the offer: it is a final and unqualified assent to its terms (the 'mirror image' rule). A reply that changes a term, such as the completion date, is a counter-offer, while a request for information or a mere expression of interest is not an acceptance. (RES Examination Syllabus 2027, LO 2.1.1, offer and acceptance)

3. Mdm Siti Rahimah offers, through her salesperson, to sell her condominium unit in Pasir Ris to Mr Daniel Koh for S$1,150,000. Mr Koh replies by WhatsApp: 'Agreed, but at S$1,120,000.' Mdm Siti does not respond. Two days later Mr Koh messages: 'OK, I accept S$1,150,000 after all.' What is the legal position?

1. A contract at S$1,120,000 arose because Mdm Siti did not object to his WhatsApp reply
2. No contract: his counter-offer ended her offer, so his last message is a new offer
3. A contract at S$1,150,000 arose when Mr Koh sent his second WhatsApp message
4. A contract at S$1,150,000 exists, as WhatsApp messages are binding on sellers

Mr Koh's first reply changed the price, so it was a counter-offer that rejected and destroyed Mdm Siti's offer. His later 'acceptance' cannot revive that offer; it is only a fresh offer, which she may accept or ignore. Her silence is not acceptance, so there is no contract at S$1,120,000 either. (Common law of offer and acceptance; LO 2.1.1)

4. Mr Iskandar has offered to sell his semi-detached house for S$3,600,000. Before replying, the buyer asks him: 'Would you consider completion in 12 weeks instead of 10?' What is the effect of this question on Mr Iskandar's offer?

1. It is a counter-offer, so the original offer is destroyed at once
2. It is a request for information, so the original offer remains open
3. It is a rejection, so Mr Iskandar must now make a fresh offer to sell
4. It is an acceptance, so a contract with 12-week completion is formed

An enquiry whether the offeror would vary a term, made without rejecting the offer, is a request for information and does not destroy the offer (Stevenson v McLean). It would be different if the buyer had replied 'I accept, with completion in 12 weeks', which would be a counter-offer. (Common law of offer and acceptance; LO 2.1.1)

5. Under the general rule on the communication of acceptance, which statement is correct?

1. Acceptance takes effect after the full deposit has been paid over
2. Acceptance takes effect when it is communicated to the offeror
3. Acceptance takes effect once the offeree privately decides to accept
4. An offeror can make the offeree's silence count as an acceptance

As a general rule, acceptance is effective when it is communicated to the offeror; an uncommunicated decision is not enough, and an offeror cannot impose silence as acceptance (Felthouse v Bindley). Where the offer prescribes a method, such as the manner of exercise in an option to purchase, that method must be followed. (Common law of offer and acceptance; LO 2.1.1)

6. Under the CEA's Option to Purchase template for private residential property, how does the purchaser exercise the option?

1. By signing the Acceptance Copy and delivering it with the stated payment to the vendor's solicitors
2. By signing a fresh sale and purchase agreement prepared by the vendor after a valuation is done
3. By paying the option money to the vendor's salesperson at any time before the completion date arrives
4. By telling the vendor's salesperson orally, before the expiry time, that he wishes to buy the unit

Clause 3 of the CEA template states that the option is accepted by the purchaser signing the 'Acceptance Copy' and delivering it to the vendor's solicitors together with the stated payment, which with the Option Money forms the Deposit, within the time set in clause 2. An oral indication to a salesperson is not a valid exercise. (CEA Option to Purchase template for private residential property, cl. 2-3)

7. On Monday, Mr Goh tells Ms Priya Nair that he will keep his offer to sell his terrace house in Serangoon Gardens open until Friday. Ms Nair pays nothing for this promise and nothing is executed as a deed. On Wednesday, Mr Goh emails Ms Nair to withdraw the offer, and she reads the email that afternoon. On Thursday, she replies that she accepts. What is the legal position?

1. No contract, because an offer to sell land automatically lapses after 48 hours
2. A contract exists, because an offer cannot be withdrawn without the offeree's express consent
3. A contract exists, because Mr Goh had promised to keep his offer open until Friday
4. No contract: the offer was withdrawn before acceptance; his promise had no consideration

An offer may be revoked at any time before acceptance, provided the revocation reaches the offeree, even if the offeror promised to keep it open, unless that promise is supported by consideration (such as an option fee) or made by deed. Mr Goh's withdrawal reached Ms Nair before she accepted, so no contract was formed. (Common law, Routledge v Grant; LO 2.1.1)

8. Which of the following events causes an offer to sell a property to lapse?

1. The expiry of the time stated in the offer for acceptance
2. A rise in market prices before the offeree has replied
3. A change of mind by the offeror that is never communicated
4. A request by the offeree for a copy of the unit's floor plan

An offer lapses when the time fixed for acceptance expires (or after a reasonable time if none is fixed). An uncommunicated change of mind does not revoke it, a request for information does not reject it, and a market movement has no legal effect on it. (Common law of offer and acceptance; LO 2.1.1)

9. In the RES syllabus, the '3Ps' that must be agreed with certainty for a property sale contract are which of the following?

1. Parties, Payment and Possession
2. Price, Payment and Permission
3. Parties, Property and Price
4. Property, Price and Possession

The RES Examination Syllabus 2027 (LO 2.1.1) lists the 3Ps, namely Parties, Property and Price, as the matters on which offer and acceptance must be certain. Without them there is no concluded agreement. Payment terms and possession are important but are not part of the 3Ps.

10. Ms Grace Ong signs a note stating that she agrees to sell 'my unit in Clementi' to Mr Rajesh Kumar 'at a price to be agreed later'. Ms Ong owns two units in the same Clementi development. Mr Kumar later claims that a binding contract exists. Which is the best assessment?

1. A binding contract, because the note was signed by the seller herself
2. No contract, solely because no option fee or deposit was paid by him
3. No concluded contract: the property and the price are both uncertain
4. A binding contract, because the price can be fixed later by a valuer

Two of the 3Ps are uncertain: the note does not identify which of her two units is sold, and a price 'to be agreed later' is a mere agreement to agree. Without certainty of Parties, Property and Price there is no concluded contract, whether or not the note is signed. (RES Examination Syllabus 2027, LO 2.1.1)

11. Mdm Chua tells her son over dinner that she will 'let him have' her condominium unit at a low price one day. Why is this unlikely to be a binding contract?

1. A sale between relatives needs the court's approval before it can bind them
2. Contracts between close relatives are void on the grounds of public policy
3. Family arrangements are presumed not to be meant to create legal relations
4. Family members lack the legal capacity to make contracts with one another

For social and domestic arrangements, the law presumes that the parties do not intend to create legal relations; clear evidence can rebut this presumption. Here the vague promise ('one day', 'a low price') is also uncertain. Relatives can contract with each other and need no court approval. (RES Examination Syllabus 2027, LO 2.1.1, intention to create legal relations)

12. In a commercial dealing such as an option to purchase between unrelated parties, what does the law presume about the parties' intention?

1. That they intend to be bound after legal completion
2. That they intend to be bound when a deed is later executed
3. That the agreement binds them if both parties use lawyers
4. That they intend their agreement to be legally binding

In commercial and business dealings the law presumes an intention to create legal relations, and the party denying it bears a heavy burden. No deed is needed where consideration is given, the use of lawyers does not create the contract, and the obligations arise well before completion. (RES Examination Syllabus 2027, LO 2.1.1)

13. A sale made under the CEA Option to Purchase template has been completed and the transfer registered, but one obligation the vendor took on in the agreement has not yet been performed. What is the effect of the template's non-merger clause?

1. The unperformed term lapses, as completion discharges every obligation
2. The unperformed term stays in force; it does not merge in the conveyance
3. The unperformed term is replaced by the Law Society's Conditions of Sale
4. The unperformed term is turned into a caveat lodged against the property

Clause 15 of the CEA template provides that, notwithstanding completion, the terms not yet fulfilled or performed remain in full force and effect between the vendor and the purchaser and do not merge in the conveyance or its registration, so the purchaser can still enforce the outstanding obligation. Completion does not discharge it, and the option's own terms prevail over the Conditions of Sale (cl. 8). (CEA Option to Purchase template for private residential property, cl. 8 and 15; LO 2.1.8, when a contract is completed)

14. A seller grants a buyer an option to purchase by deed, and the buyer pays no option fee. Is the seller bound to keep the option open for the stated period?

1. No, without an option fee the seller may withdraw it at any time
2. Yes, a promise made by deed binds even without consideration
3. Yes, but the buyer must first pay the full 5 % deposit
4. No, a deed takes effect when it is registered with the SLA

The syllabus refers to 'form (i.e. deed) or consideration': a promise made by deed is binding without consideration. An option fee is the usual way to supply consideration, but a deed is an alternative. A deed binds the parties to it without registration with the SLA. (RES Examination Syllabus 2027, LO 2.1.1)

15. HDB allows the Option Fee for a resale flat to be as low as S$1. Why can such a small sum still support a binding option?

1. A sum below S$1,000 is a gift, so no consideration is required at all
2. Consideration must be sufficient in law, but it need not be adequate
3. HDB's approval of the resale makes consideration unnecessary for it
4. The Option Fee is refunded on exercise, so its amount is irrelevant

Consideration must have some value in the eyes of the law, but the court does not weigh its adequacy, so a nominal sum suffices. HDB states that the Option Fee is between $1 and $1,000, mutually agreed, and that it forms part of the resale price; it is not refunded on exercise. (HDB, Option to Purchase when buying a resale flat; LO 2.1.1, consideration)

16. A seller in her 80s, recently diagnosed with advanced dementia, signs an option to purchase. Which essential element of a valid contract is most directly in doubt?

1. The seller's capacity to enter into the contract
2. The certainty of the Parties, Property and Price
3. The legality of the object of the sale and purchase
4. The intention to create legal relations between them

Capacity of parties is one of the essential elements listed in LO 2.1.1 (cross-referred to Unit 2.11). A person who lacks mental capacity may be unable to make a binding decision to sell, so a donee under a lasting power of attorney or a court-appointed deputy may be needed. The other elements are not in question on these facts. (RES Examination Syllabus 2027, LO 2.1.1)

17. An HDB flat seller and buyer sign a side agreement for an undeclared cash payment on top of the resale price declared to HDB. How is the side agreement likely to be treated?

1. As illegal and unenforceable, being in breach of HDB rules
2. As binding once both parties have signed it before a witness
3. As valid, since parties may agree on any extra sum between them
4. As voidable at the buyer's option during the 21-day option period

The CEA Professional Service Manual (para 2.2.11) gives this example: where the buyer and seller enter into a supplementary agreement in breach of HDB procedures, the salesperson must advise them that it is illegal and that they must comply with HDB procedures. A contract with an illegal object is generally void and unenforceable. (CEA PSM para 2.2.11; LO 2.1.1 legality of object; LO 2.1.6)

18. A prospective tenant and a landlord sign a letter of intent for a 2-year lease of an apartment. It states that it is 'subject to contract' and 'not legally binding' until a formal tenancy agreement is signed. What is its usual effect?

1. It becomes binding on both sides automatically after 14 days of silence
2. It creates a binding two-year lease from the date both parties sign it
3. It binds the landlord to the lease but leaves the tenant free to withdraw
4. It records the proposed terms but does not bind the parties to the lease

Whether a letter of intent binds depends on its wording and the parties' intention. Words such as 'subject to contract' and 'not legally binding' show that the parties do not yet intend to be bound; the LOI simply records the agreed terms pending the formal agreement. Silence does not make it binding. (RES Examination Syllabus 2027, LO 2.1.1, letter of intent)

19. Ms Fatimah, who runs a cafe, and the owner of a shophouse sign a letter of intent setting out the parties, the premises, the rent, a 3-year term and the start date. It contains no 'subject to contract' wording. Ms Fatimah pays the agreed deposit and receives the keys, and the owner accepts the first month's rent. The owner later argues that the LOI is not a contract. Which assessment is most accurate?

1. It cannot bind anyone, as a letter of intent is by its nature not a contract
2. It binds them from the date a formal lease is executed by both sides
3. It binds the owner alone, since the owner is the party who received money
4. It may well bind them, as the terms are certain and both acted on it

A letter of intent is binding if, on its wording and the parties' conduct, they intended to be bound and the essential terms are certain. Here the key terms are agreed, there is no 'subject to contract' reservation, and both parties have performed (deposit, keys, rent), so a court may find a binding agreement. An LOI is not automatically non-binding. (LO 2.1.1, letter of intent; LO 2.1.8, when a contract for lease is formed)

20. At a property auction, at what point is the contract for the sale of a lot generally formed?

1. When the highest bidder signs the formal sale documents the next day
2. When the auction notice is first published in the newspapers
3. When the auctioneer accepts a bid, usually by the fall of the hammer
4. When the auctioneer announces the reserve price before the bidding

At an auction, the call for bids is an invitation to treat; each bid is an offer, which the auctioneer accepts, normally by the fall of the hammer. Until then a bidder may withdraw his bid. (Common law of offer and acceptance; LO 2.1.1)

21. Mr Lim grants Ms Tan Hui Min an option to purchase his condominium unit at S$2,100,000. When exercising, Ms Tan crosses out the completion date in the Acceptance Copy, writes in a date 4 weeks later and delivers it with the exercise payment on time. Mr Lim refuses to proceed. Has the option been validly exercised?

1. Yes, the option fee already obliges Mr Lim to accept her new terms
2. No, because exercise requires Mr Lim's salesperson to countersign
3. Yes, a small change to the completion date does not affect exercise
4. No, the altered acceptance is a counter-offer, not a valid exercise

An option must be exercised strictly in accordance with its terms, and acceptance must mirror the offer. By changing the completion date, Ms Tan did not accept the terms offered; her document is a counter-offer that Mr Lim may reject. The option fee binds Mr Lim to keep his offer open on its own terms, not on new ones. (LO 2.1.1; CEA Option to Purchase template, cl. 3 and Acceptance Copy)

22. An option to purchase for a terrace house states that it remains open until 4 p.m. on 18 June. The buyer's solicitors deliver the signed Acceptance Copy and the exercise cheque to the vendor's solicitors at 5.15 p.m. on 18 June. The vendor refuses to proceed. Which statement is correct?

1. The vendor must refund the option money, as no sale has taken place
2. The exercise is valid, as a late exercise merely attracts late interest
3. It lapsed at 4 p.m., so the vendor may refuse and keep the option money
4. The exercise is valid, as it was delivered on the day of expiry itself

The option is open only until the stated time (CEA template, cl. 2). Delivery at 5.15 p.m. is out of time, so there is no valid exercise and no sale contract. Under cl. 4, if the purchaser does not exercise in the stipulated manner, the option becomes null and void and the Option Money is forfeited to the vendor. (CEA Option to Purchase template for private residential property, cl. 2-4)

23. When an option to purchase is used for a private residential property, when does a binding contract for the sale and purchase come into existence?

1. When the purchaser's bank issues its letter of offer for the loan
2. When the purchaser validly exercises the option as stated in it
3. When completion takes place and the transfer is lodged for registration
4. When the vendor grants the option against payment of the option fee

Clause 5 of the CEA template states that 'upon the Purchaser's valid exercise of this Option, there shall be constituted ... a valid and binding agreement for the sale and purchase'. Granting the option creates only the option contract (the vendor's irrevocable offer); the sale contract arises on exercise. (CEA Option to Purchase template, cl. 5; LO 2.1.8)

24. Mdm Wong grants Mr Ahmad an option to purchase her apartment, open for 14 days, against an option fee of 1 % of the price. On day 5 she receives a higher offer, tells Mr Ahmad she is 'cancelling' the option and returns his option fee. On day 10, Mr Ahmad exercises the option in the manner stated in it. What is the legal position?

1. Her cancellation was ineffective, so his exercise binds her to sell
2. A sale contract, provided Mr Ahmad agrees to match the higher offer
3. No sale contract, because she returned the option fee before he exercised
4. No sale contract, because any offer may be withdrawn before it is accepted

Because Mr Ahmad paid an option fee, the option is supported by consideration and Mdm Wong cannot revoke it during the option period; returning the fee does not change this. His valid exercise within the period creates a binding sale contract, and if she refuses to complete she faces damages or specific performance. (CEA Option to Purchase template, cl. 1-5; LO 2.1.1 consideration; LO 2.1.8)

25. Mr Tan Wei Ming orally agrees to sell his condominium unit to a colleague for S$1,500,000. No note or memorandum of the agreement is signed by Mr Tan. How is this agreement best described?

1. Illegal, as every sale of private property must be handled by an estate agent
2. Voidable at the option of either party at any time up to legal completion
3. Void, as an oral agreement for the sale of land has no legal existence at all
4. Unenforceable, as a sale of land must be evidenced in signed writing

Under section 6(d) of the Civil Law Act 1909, no action may be brought on a contract for the sale or other disposition of immovable property unless it, or a memorandum or note of it, is in writing and signed by the party to be charged or his authorised agent. The oral agreement is not void: it exists but cannot be enforced in court, i.e. it is unenforceable. (Civil Law Act 1909, s. 6(d); LO 2.1.6, legal effects)

26. Which statement correctly describes an express term, as distinct from an implied term?

1. An express term is one that applies by custom of the property trade
2. An express term is one stated by the parties, orally or in writing
3. An express term is any remark a salesperson makes during a viewing
4. An express term is one that a court reads into the contract later on

Express terms are those the parties have specifically agreed, orally or in writing, such as the price and completion date in an option to purchase. Implied terms are not stated but are read into the contract by the courts (in fact or in law), by statute or by custom. (RES Examination Syllabus 2027, LO 2.1.2)

27. In which situation will a court most readily imply a term in fact into a property contract?

1. Where the salesperson suggested the term during the negotiations
2. Where one party later wishes that such a term had been included in it
3. Where the term is necessary to give the contract business efficacy
4. Where the term would make the bargain fairer to the weaker party

A term is implied in fact only where there is a gap and the term is necessary to give business efficacy to the contract or is so obvious that it goes without saying (the 'officious bystander' test). Courts do not imply terms merely because they would be reasonable or fair, or because a party regrets leaving them out. (Common law, implied terms; LO 2.1.2)

28. A short written tenancy agreement for a condominium unit says nothing about the tenant's right to quiet enjoyment. Which statement is correct?

1. The tenant has no such right unless it is written into the lease
2. Quiet enjoyment is implied in registered leases above 7 years alone
3. The law implies a covenant by the landlord for quiet enjoyment
4. Quiet enjoyment has to be agreed with the MCST of the building

A covenant for quiet enjoyment by the landlord is implied by law into every lease, even if it is not stated; express wording, such as clause 6.1(b) of the CEA private residential tenancy template, simply spells it out. It is an example of a term implied in law. (LO 2.1.2; CEA tenancy template, Operative Part cl. 6.1(b))

29. How does the CEA Option to Purchase template for private residential property deal with the Law Society of Singapore's Conditions of Sale 2020?

1. It reproduces them in full, and they prevail over the option's own terms
2. It incorporates them by reference; its own terms prevail on a conflict
3. It excludes them, since they are meant for HDB resale transactions
4. It treats them as implied terms that the parties are unable to exclude

Clause 6 of the CEA template makes the option subject to the Conditions of Sale 2020 so far as they do not conflict with the Conveyancing Rules and the SAL (Conveyancing Money) Rules; clause 7 and Annex A let the parties exclude particular Conditions, and clause 8 provides that the option's terms prevail over the Conditions. The Conditions thus become express terms by incorporation by reference. (CEA OTP template, cl. 6-8; PG 1-2021, paras 4 and 10)

30. During a viewing, the seller tells the buyer that the crystal chandelier and the built-in wine chiller will stay with the unit. The option to purchase, on the CEA template, says nothing about these items. On completion, the seller removes both. What should the buyer's salesperson have done to protect the buyer?

1. Relied on the seller's oral assurance, which overrides the written option
2. Advised the buyer to withhold the option fee until the completion day
3. Had the promise written into the option as an added term, e.g. in Annex D
4. Asked the seller's salesperson to confirm the promise orally as well

The template's clauses 21 and 22 provide that its written terms supersede information given by the parties or their agents and that no representation not embodied in the agreement binds them. Items to be included in the sale should therefore be recorded as express terms, e.g. in Annex D, which lets the parties add or vary terms. Messages and oral assurances outside the option are unlikely to help. (CEA OTP template, cl. 21-22 and Annex D; LO 2.1.2; LO 2.1.8)

31. In contract law, what is a 'condition'?

1. An essential term whose breach allows the innocent party to terminate
2. A term that a court implies to give the contract business efficacy
3. A pre-printed term in a standard form that a buyer cannot negotiate
4. A minor term whose breach gives the innocent party a claim in damages

A condition is a term going to the root of the contract; its breach entitles the innocent party to treat the contract as discharged (terminate) and to claim damages. A warranty is a less important term whose breach gives a right to damages but not to terminate. (RES Examination Syllabus 2027, LO 2.1.3)

32. Which of the following terms in a contract for the sale of a condominium unit is most likely to be treated as a warranty rather than a condition?

1. The seller's obligation to show and convey a good title to the property
2. The purchaser's obligation to pay the balance of the price on completion
3. A promise that the seller will repaint the living room before handover
4. A completion date expressly stated in the contract to be of the essence

Terms that go to the root of a sale, such as payment of the price, good title and a completion date made 'of the essence', are treated as conditions. A promise to repaint a room is ancillary: its breach gives the buyer damages (for example the cost of repainting) but not a right to terminate the sale. (RES Examination Syllabus 2027, LO 2.1.3)

33. Ms Charmaine de Souza buys a condominium unit 'with vacant possession' on completion. On the completion date, the seller's former tenant is still living in the unit and refuses to leave. The seller asks Ms de Souza to complete anyway and 'sort it out later'. Which statement best describes her position?

1. There is no breach, as a sitting tenant binds every later buyer anyway
2. There is a breach of warranty, so she must complete and then claim damages
3. There is a breach of condition, so she may elect to terminate and claim damages
4. The contract is frustrated, so both parties are released from the sale

Where vacant possession is expressly promised, delivering it goes to the root of a residential sale, so failure to do so is a breach of condition. The buyer may treat the contract as discharged and claim damages, or affirm, complete and claim damages. The sitting tenant is the seller's responsibility, so the contract is not frustrated. (LO 2.1.3; LO 2.1.8, constitution of a breach of condition; CEA OTP template, cl. 11)

34. Leaving aside any express termination clause, how is a tenant's single missed quarterly air-conditioner servicing, required by the tenancy agreement, most likely to be classified?

1. As an illegal act that makes the tenancy void from the start
2. As a frustrating event that discharges the whole of the tenancy
3. As a breach of condition that ends the tenancy automatically
4. As a breach of warranty, giving the landlord a claim in damages

The servicing covenant (e.g. CEA private tenancy template, Operative Part cl. 4.4) is an ancillary obligation; one lapse does not go to the root of the tenancy, so at common law it is a breach of warranty sounding in damages. A right to terminate would have to come from an express clause such as cl. 7.1(b), which requires written notice and 14 days to remedy. (LO 2.1.3; CEA tenancy template, cl. 4.4 and 7.1)

35. Mr Kenji Watanabe, a foreigner, exercises an option to purchase a terrace house. The option, based on the CEA template, contains the clause for a purchaser who needs approval under the Residential Property Act. His application to the Controller of Residential Property is rejected within the stated period. What is the consequence?

1. He forfeits the whole deposit, since it was his choice to exercise it
2. The vendor may claim damages from him for the failed sale of the house
3. He must still complete, as approval is not needed to buy landed houses
4. The agreement is cancelled and his monies are refunded, without interest

Under PG 1-2021 (Part III, para 16), an option or S&P agreement for a buyer restricted by the Residential Property Act must be made subject to the Controller's approval. In the CEA template, cl. 17 provides that if approval is not obtained, cl. 16 applies: the vendor refunds all monies paid towards the price without interest, compensation or deduction, and each party bears its own costs. (PG 1-2021, para 16; CEA OTP template, cl. 16-17)