Construction analysis: The Technology and Construction Court held that liabilities arising from breaches of obligations under a pre-construction services agreement (PCSA) survived the execution of a subsequent Joint Contracts Tribunal (JCT) building contract, notwithstanding contractual wording providing that rights and liabilities under the PCSA were to be ‘subsumed into and be subject to’ the later contract. The judge concluded that an adjudicator had been wrong to find that the JCT contract superseded liabilities arising under the PCSA. The decision provides guidance on the distinction between contractual obligations and liabilities, and on the transmission of liabilities from a PCSA to a subsequent building contract. It also illustrates the court’s willingness to correct adjudicators’ contractual analysis through Part 8 proceedings where short points of construction arise.

A fixed-term contract may be agreed with provision for automatic renewals at the end of the fixed period. Automatic renewal clauses may take a variety of forms to the following effect. For example: • indefinite term renewal subject to notice—‘this agreement shall continue in force for a period of [three] years from the commencement date. Upon the expiry of such period, the agreement shall continue in force until either party serves notice to terminate the agreement in accordance with the provisions of clause [x] in which case this agreement shall terminate [sixty] days from the date of such notice’

STOP PRESS: From 1 October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 (inserting sections 14A and 15A of the Immigration, Asylum and Nationality Act 2006) extends right to work civil penalty liability in certain contractual arrangements, including where a supplier which, having contracted to provide services to a customer, engages a subcontractor to perform all or part of those services. Although the subcontractor remains responsible for carrying out prescribed right to work checks on individuals it employs or engages to perform the subcontracted services, the supplier may be treated as 'employing' any individual who personally performs the services and so may also be held liable for illegal working unless it satisfies the prescribed requirements for establishing a statutory excuse. The extended liability requirements apply to relevant contractual arrangements entered into on or after 1 October 2026. See News Analysis: Extended scope of the right to work regime: how will it work in practice? and LNB News 14/09/2026 18 for further information. This Precedent will be updated shortly to reflect the changes. This Agreement

This Practice Note provides guidance on the limitation periods for breach of contract claims pursuant to the Limitation Act 1980 (LA 1980). It should be read in conjunction with Practice Notes: • Limitation Act 1980—general application, which details the general principles for calculating limitation periods pursuant to LA 1980, including when time runs from and stops running • Limitation—the principal limitation periods, which provides an overview of the key limitation periods for disputes. As well as including high-level details relevant to breach of contract claims, it may assist in relation to other claims that could apply concurrently on the facts For more general guidance relating to breach of contract and debt claims, see: • Contractual breach damages and remedies—overview • Debt claims—overview General Pursuant to LA 1980, s 5, the limitation period for bringing a claim for breach of contract is: • six years from the date of breach of a 'simple contract', meaning one which is not under seal or a contract of record (Gould v Johnson). Broadly, this includes most agreements made between parties

In respect of commercial contracts, under English law there is no significant difference between the terms ‘termination’ and ‘determination’. A contract can be terminated or determined where a party to a contract conducts itself in such a manner that its conduct is viewed in law as being so wrongful that the other party to the contract is entitled to terminate the contractual relationship. This can occur in two ways: either by a common law determination, where the guilty party must have committed a fundamental, or repudiatory, breach and the innocent party must have, by word or action, elected to accept the repudiation, or a contractual determination where a party may lawfully determine the contract by exercising powers to the effect expressly provided for in a contractual termination clause. The term ‘termination’ or ‘determination’ in relation to a commercial construction contract connotes the ending of the contractor’s employment under the contract. The central point to note is that although the employment of the contractor

The answer to this question depends on a contractual analysis of the situation. It is assumed from the question that a binding contract has been formed at the point when the individual signed the contract and accepted the job. At that point there was an offer, an acceptance, consideration and an intention to create legal relations between the parties. On that assumption, the individual's decision not to carry out their obligations under the contract amounts to an anticipatory breach of contract by them. The courts will not order an individual in these circumstances to work under the contract. The employer is therefore left with a claim for damages in respect of any loss suffered by it as a result of the individual's breach of contract. The question is then what damages the employer is entitled to, if any. Damages Loss may be recovered where the consequences might reasonably be expected to have been in the contemplation

This Q&A refers to a business-to-business contract which is not subject to specific industry regulations or contracting terms. Under English contract law, a contract is formed when: • a valid offer is accepted • there is valid consideration • the parties intend to create legal relations For more information, see subtopic: Formation and interpretation. It is essential, when dealing with standard terms and conditions (T&Cs), that one party's T&Cs are brought to the attention of the other if they are to be effectively incorporated into a contract. See Practice Note: Standard terms and conditions—incorporation which summarises the law, guidance and practice in relation to incorporating a contracting party’s T&Cs into contracts and agreements. It provides guidance on how to ensure that your

This Practice Note is a ‘how to’ guide on novating commercial contracts which signposts relevant content. It includes a summary of what novation is, how it is distinct from assignment, whether novation is appropriate, the requirements for a valid novation, other legal considerations and practical points when novating a contract. There may be times when, rather than just assigning the benefit of an agreement to a third party, the original parties wish to also transfer the obligations and responsibilities. This may be achieved by novating the contract. For detailed guidance on the law in relation to contractual novation, see Practice Note: Novation—why and how to novate a contract. For a useful, detailed checklist to use when you need to novate an agreement, see: Drafting and negotiating a novation—checklist. What is a contract novation? Novation occurs when an outgoing party 'transfers' its obligations and rights under the agreement to an incoming party, so that the incoming party 'steps into the shoes' of the outgoing party and forms a contractual relationship between the remaining party and the incoming

Construction analysis: The Technology and Construction Court (TCC) examined and applied the principles of contract formation, considered whether defects alleged by the claimant were breaches of contract and how the losses should be calculated in relation to a dispute on an equipment repair contract.

When it comes to notice periods for terminating a contract of employment, the Employment Rights Act 1996 (ERA 1996): • requires a worker’s written statement of employment particulars (to which most workers are entitled, and which can take the form of an employment contract) to include, among other things, particulars of: • the length of notice which the worker is obliged to give and entitled to receive to terminate their contract, and • in the case of a fixed-term contract, the date the fixed-term contract is to end • provides for minimum periods of notice (in relation to employees who qualify for the right) that must be complied with for an employer, and an employee, to bring a contract to an end (ERA 1996, s 86). If the employment contract specifies a longer notice period (in each case) than the statutory

This Practice Note is the third of a series of three Practice Notes on health care procurement introduced by the Provider Selection Regime (PSR) as implemented by the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR Regs 2023), SI 2023/1348, which came into force on 1 January 2024. This Practice Note covers: • standstill period • contract award • contract modifications • urgent awards/modifications • contract management, and • termination Standstill period A contract procured using the: • direct award process C • most suitable provider process • competitive process, or • framework agreement must not be entered before the end of the standstill period. The standstill period begins the day after the notice of intention to make award is published on the central digital platform. It must last for a minimum of eight working days. This delay is to give a service provider who is either aggrieved or believes that PSR Regs 2023 have not been complied with the opportunity to make written representations to the ‘relevant authority’ (RA) particularising

When approaching contract drafting the focus is frequently fixed on the negotiation of the main body of the contract provisions and it is often considered that the schedules are the place for ancillary information, such as agreed template forms and security documents (eg bonds and guarantees) which work alongside the main contract terms and conditions. In an FM contract, far from being ancillary, the schedules form an essential and integral part of the contract, as they include the detail which evidences the client's requirements and drives the parties’ contractual expectations as to value and performance. The extent to which schedules are utilised in FM contracts differs in practice depending on the complexity and scope of services to be performed. It should always be assessed on a project-by-project basis as to which schedules are required and how detailed they should be. For example, industry standard contract forms for use on more straightforward and short term projects incorporate, as a minimum, schedules that cover: • project and financial details • services • specifications This Practice