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GLOSSARY
An ‘on-premises contract’ is a contract between a trader and a consumer which is neither a distance contract nor an off-premises contract.
NEWS
The Ministry of Housing, Communities and Local Government (MHCLG) has published guidance for local authorities and fire and rescue services on the developer remediation contract in England. The contract covers residential buildings at least 11 m in height developed or refurbished by 53 signatory developers or their group companies during the 30-year period ending on 4 April 2022. Developers must identify buildings within scope and remediate relevant life-critical fire safety defects where required. The guidance clarifies that MHCLG oversees developers' contractual performance, while local authorities, fire and rescue services and the Building Safety Regulator retain statutory enforcement responsibilities. Regulators are encouraged to engage with developers and notify MHCLG of suspected contractual breaches or contemplated enforcement action, but must act immediately where there is an imminent risk to life. The guidance also covers quarterly remediation data sharing, fire safety assessments, remediation monitoring, disputes and emergency resident decants. In serious cases of poor performance, eligible developers risk losing Responsible Actors Scheme membership, which would lead to planning and building control prohibitions.
PRACTICE NOTES
The doctrine of privity of contract has traditionally prevented injured third parties in Ireland from claiming against insurers. Before September 2020, the principal statutory exception was s 62 of the Civil Liability Act 1961 (Ireland) (CLA 1961 (IRL)) which required a third party to obtain judgment against a policyholder before proceeding to enforce the award against an insurer. The introduction of the Consumer Insurance Contracts Act 2019 (Ireland), s 21 (CICA 2019 (IRL)) has mitigated these limitations, allowing a third party—who is a consumer—to claim directly against an insurer in certain circumstances, without first needing to establish the policyholder's liability in separate proceedings (although liability must still be established before the contract can be enforced). The historical barrier: privity of contract A third party who is not a party to an insurance contract will generally have no rights at common law against an insurer due to the doctrine of privity of contract. Until the commencement of CICA 2019 (IRL), s 21,
NEWS
Construction analysis: The Technology and Construction Court (TCC) held that the defendant homeowners were in repudiatory breach of contract, where they had wrongly concluded that the contractor’s suspension of works was itself repudiatory and made clear that the contractor should not return to site. The court was also required to consider whether the contract had been a cost plus or fixed price contract.
PRACTICE NOTES
This Practice Note examines the provisions of the Employment Rights Act 1996 (ERA 1996) in relation to continuity of employment. It sets out the purposes for which continuity of employment (length of service) is important (ie the right to bring claims and level of compensation), general principles of calculation, when the continuous employment period starts and ends, breaks in continuity (break in service), how the period of continuous employment is calculated, when continuity is not broken by a change in employer, weeks which count when there is a contract of employment, weeks which count when there is no contract of employment, the effect of sickness, injury or a temporary cessation of work, when there is an arrangement or custom preserving continuity, the effect of zero hours contracts, rules in relation to health service employers, the protection of redundancy payments for NHS and public authority employees, and the effect of illegality, and when a statutory redundancy payment breaks continuity. It also covers continuity rules in relation to overseas employment and redundancy, reinstatement after military service (military reservist) and
GLOSSARY
A ‘service contract’ is a contract, other than a sales contract, under which a trader supplies or agrees to supply a service to a consumer and the consumer pays or agrees to pay the price.
Q&As
It is not clear from the question why it is proposed that the contractor’s parent company should enter into the bond instead of, or as well as, the contractor. Whether this is an advisable course of action may depend on the particular circumstances, the demands of the guarantor/employer and financial stability of the contractor etc. However, in our experience, it is certainly not common. We envisage that the reason it is being considered may be because the parent company is going to pay for the bond, rather than the contractor. If this is the case, it does not seem essential for the parent company to be party to the bond in order to pay for it (just as, where it is paying, the contractor
PRACTICE NOTES
In English law, there is a presumption that everyone has a capacity to contract. However, if you are a minor or you lack the necessary mental capacity or you are a drunken person, that presumption will generally be rebutted and the contract unenforceable. Capacity issues can also arise in relation to entities such, as for example, local authorities and their capacity to enter into certain kinds of transaction which may be confined by legislation. This Practice Note sets out the scope of the capacity doctrine. Capacity to contract—the general principle—presumption The law presumes that everyone has a capacity to contract. Any person seeking to rebut that presumption must strictly prove that they belong to one of three classes of individual: • a minor. For the purposes of the law of contract, a 'minor' is any person under 18 (section 1 of the Family Law Reform Act 1969) • a person lacking the requisite mental capacity • a drunken person In the case of mental incapacity, abnormal weakness of mind as prevents a person from understanding
Q&As
There is no express geographic restriction in the Coronavirus Job Retention Scheme (CRJS) Treasury directions, or the CRJS guidance. However, the directions require that the employee was on the UK employer's payroll in tax year 2019–20. This means a Real Time Information submission notifying payment in respect of that employee to HM Revenue and Customs must have been made on or before 19 March 2020. Accordingly, if, for example, the employee had switched to a non-UK payroll prior to tax year 2019–20, no CRJS
Q&As
This Q&A assumes that A is a consumer and not a business. Who to sue? In this Q&A the brokerage acts as B’s agent. A principal (here B) is normally liable for all acts of an agent within the agent's authority, whether responsibility arises in contract or in tort. Authority means the agent's actual, apparent or usual authority. Usually therefore, a third party will be able to sue the principal, ie in this scenario A to sue B. However, there are exceptions to this rule. For example, where the agent acts outside authority and the principal does not ratify the agent's acts, the principal is not bound. The
Q&As
Overage It is common practice for overage provisions to be included in the transfer or in a separate deed to be registered at the Land Registry. There are various reasons why it is usually included in the transfer rather than the contract, including to take advantage of the 12-year limitation period applicable to deeds and for ease of noting the provisions at the Land Registry. In addition, a contract falls away on completion (although it is possible to include a provision to ensure that the contract remains in force in relation to any matters which have not been performed
Q&As
A change of service provider may amount to a 'service provision change' (SPC) within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246 whether or not it is also a 'business transfer'. A service provision change may involve outsourcing, a change of contractor or insourcing. In addition to the need for one of those three situations to apply, the following conditions must be satisfied: • (immediately before transfer) there must be an organised grouping of employees (which may be a single employee) situated in Great Britain • (immediately before transfer) the principal purpose of the organised grouping must be the carrying out of the activities on behalf of the client • (immediately before transfer) the client must intend the activities to be carried out by the transferee • the client must intend the activities not to relate to a single specific event or short-term task • the activities must not consist