The following Construction practice note provides comprehensive and up to date legal information covering:
The Limitation Act 1980 (LA 1980) (as amended by the Latent Damage Act 1986 (LDA 1986)) governs the time limits for bringing different types of legal claims. If a claim is brought outside of the relevant limitation period, the defendant will be able to plead in defence that the remedy sought by the claimant is time-barred. The most relevant limitation periods for the construction industry are those for contractual and tortious (negligence) claims, although the LA 1980 also specifies time periods for actions relating to personal injury, defective products and defamation. Further, there is a specified time limit for bringing a claim under the Defective Premises Act 1972.
Limitation can be particularly relevant in relation to claims arising out of defective works, as the cause of action may have arisen some years before the problem manifests itself. An example is where the contractor installs faulty foundations which result in cracking to walls and subsidence, but the problem only becomes evident some years later. In such a case, there is a possibility that the limitation period will have expired before the defect appears.
In law there are two types of contract:
a simple contract (also known as a 'contract under hand' or a 'signed contract'), and
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Scotland: the Accountant in BankruptcyThe office of the Accountant in Bankruptcy (AiB) was created by section 156 of the Bankruptcy (Scotland) Act 1856 . Previously, the functions of the AiB were limited but since 1993, with the enactment of the Bankruptcy (Scotland) Act 1993 (B(S)A 1993), the role
Common financial covenantsThis Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan
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Pre-trial and case management hearings in the Crown CourtCoronavirus (COVID-19): This Practice Note contains guidance on subjects impacted by the Coronavirus Act 2020 (CA 2020). CA 2020, among other measures, makes provision for the extended use of live links and audio links in criminal proceedings.
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