The following Practice Compliance Q&A Produced in partnership with David Sawtell of 39 Essex Chambers provides comprehensive and up to date legal information covering:
This Q&A answers the following questions:
can a firm be liable to its client in a transaction where a loss is sustained through currency fluctuation arising from the firm's delay. What is the firm's potential liability in:
breach of contract (under any relevant implied terms)
what if the loss arises out of a delay for which the firm is not responsible, eg delay on the part of the client or other party?
what if there is no delay to the transaction, but there is a currency fluctuation causing loss during the expected/normal transaction duration period?
can a firm limit its liability for claims arising out of the above scenarios eg through a clause in its Terms of Business?
Although the question refers explicitly to currency fluctuations following Brexit, practitioners encounter this kind of uncertainty and risk on a fairly regular basis. In 2015, we had to deal with the Greek government debt crisis and the possibility that it would leave the Eurozone.
It has been a well-established principle of English law since the 17th century that a debt payable at a future time involves an obligation to pay the nominal amount of the debt at the date of payment in whatever is legal tender for that currency at that date, irrespective of any fluctuations in the currency in which the debt is expressed
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
What is a company's constitution?A company’s 'constitution' is defined under the Companies Act 2006 (CA 2006) as including:•the company’s articles of association, and•any resolutions and agreements affecting a company’s constitutionThe CA 2006 definition of 'constitution' is not exhaustive and also
Commercial Property Standard Enquiries (CPSEs) are industry standard pre-contract enquiries used in commercial property transactions. CPSEs are endorsed by the British Property Federation and are free to use. The CPSEs include specific environmental enquiries at enquiry 15 and there are several
What is a third party debt order (TPDO)?Third party debt orders were previously known as 'garnishee' orders and operated under the regime provided for in CCR Ord 30 and RSC Ord 49 (now revoked). Although the rules in CPR 72 are new, many of the principles with which they are concerned are well
Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.