Welcome to the highlights from the Lexis®PSL Construction team for the week ending 25 May 2017. Key developments to note this week: (1) The Northern Ireland High Court considered the assessment of compensation events under an NEC3 contract (NIHE v Healthy Buildings); (2) The Technology and Construction Court (TCC) found that dispute resolution provisions in a main contract had been incorporated into a sub-contract (Dawnus v Amey LG); and (3) The Court of Appeal held that performance levels in a contract described as ‘examples’ were binding (Rydon v Sutton).
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What is rescission of a contract?The remedy of rescission is available to a party whose consent, in entering into a contract, has been invalidated in some way:•the effect of rescinding a contract is to extinguish it and restore the parties to their pre-contractual positions•the main grounds of
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
This Practice Note discusses the common law doctrine of privity of contract; the equitable and statutory exceptions to it; how the doctrine affects enforcing a contract against a third party and what happens when, notwithstanding the lack of privity, a contract has an indirect effect on a third
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
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