Sarah works from home and her internet connectivity is dropping sporadically making it difficult to...

In this scenario, the discount offered by the customer service representative (CSR) to Sarah is a contract-based discount. This type of discount is applied as part of an agreement or contract renegotiation in response to a specific issue or to retain a customer, in this case, due to dissatisfaction with the service. The discount applies to future billing cycles (12 months), indicating it modifies the terms of the ongoing service contract rather than just a single order or account-wide policy.