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CHECKLISTS
This Checklist sets out the relevant issues when considering terminating a contractual relationship, whether for convenience, breach of contract, on the occurrence or non-occurrence of specific termination events or other commercial provisions. It includes possible alternatives to termination, the different grounds for termination, establishing breach of contract and whether this entitles a party to terminate (in accordance with contractual rights to terminate or for repudiatory breach at common law and the relationship between the two), other important contractual provisions to bear in mind, the steps to be taken before and after termination, the process of termination and the practical steps following termination. For more information on termination generally, see: Contract termination—overview. For a ‘how to’ guide on contract termination see Practice Note: How to terminate a contract. There are various other bases and grounds on which a contract may be terminated which do not involve any breach of its terms. For a summary of the different causes of termination and ways to discharge a contract, see Practice Note: Termination and expiry of contracts. See also: Choosing a termination right—flowchart. For
PRACTICE NOTES
This Practice Note summarises the law, guidance and practice relating to the variation of contracts and deeds. It explains how a contract or deed can be varied in writing, orally or by conduct, and also considers unilateral variation, waiver and sustained minor breach. It sets out practical and drafting considerations, and issues to consider when varying business-to-consumer contracts, public contracts and third party guarantees. It also considers third party rights on variation. For a step by step guide to contract variation with full resources, see Practice Note: How to vary a contract. See Practice Note: Contract variation—FAQs for frequently asked questions relating to the variation of commercial business-to-business (B2B) contracts and deeds. Where the need for a contract variation is a result of a renegotiation following difficulties experienced during the contract, see also Practice Note: Managing difficulties in commercial contracts for further guidance. When is a contract variation appropriate? It is a commercial reality that parties doing business together do not simply enter into self-contained discrete contracts with each other but engage in a business relationship that evolves
PRACTICE NOTES
This Practice Note brings together the following frequently asked questions relating to the variation of commercial business-to-business (B2B) contracts and deeds: • What is the best approach for varying the terms of a B2B contract? • How do you vary a deed? • How do you remove or replace a party to an agreement? • Can a multi-party B2B contract be varied by only one party? • What is the process for extending the term of a contract? • Can a contract be varied by performance or a course of dealing? • What is the process for varying prices under a contract? • How do you vary the services to be provided under a contract? • What formalities, if any, are needed if a party to a commercial agreement changes its name or status from that stated in the original contract? • What precedents do you have for varying a contract? • Is there anything else I need to consider when varying a contract? A contract variation is a change to an existing agreement, after it has
CHECKLISTS
This Checklist sets out the issues to consider when drafting a variation document to vary an underlying agreement. For a summary of the law, guidance and practice relating to the variation of contracts and deeds, see Practice Note: Contract variation. For a ‘how to’ guide on varying commercial contracts which signposts relevant content, see Practice Note: How to vary a contract. See Practice Note: Contract variation—FAQs for frequently asked questions relating to the variation of commercial business-to-business (B2B) contracts and deeds. Parties may consider contract variation for a number of reasons. If the variation arises in the context of renegotiation due to contractual difficulties, see also Practice Note: Managing difficulties in commercial contracts for further guidance. For template variation documents, see Precedents: • Variation agreement • Deed of variation Variations can be drafted in letter form and this may be sufficient where the amendments are minor. Duplicate copies of the letter should always be provided and it is important to ensure that it is signed and returned before the variation is due to take effect. See Precedent: Letter
GLOSSARY
A worker who is engaged by an employer under a contract for services.
NEWS
Employment analysis: Julian Milford KC successfully defended The Royal Parks Ltd in the Court of Appeal in a case concerning contract worker discrimination in relation to pay. The following analysis written by Julian Milford KC, barrister at 11KBW, considers the judgment.
GLOSSARY
The opposite of a trustee-based scheme, whereby members establish a personal contract with the pension provider that has been selected by the employer.
GLOSSARY
A pension scheme was contracted-out where it provides certain benefits in place of the state second pension. These schemes paid lower National Insurance contributions. Members were contracted out if they were in employment that was contracted out by reference to either an occupational pension scheme or they had elected to contract out using a personal pension plan.
GLOSSARY
The amount deducted from the additional State Pension to account for any Guaranteed Minimum Pension payable by an individual’s contracted-out private pension scheme (or schemes).
GLOSSARY
This was the provision of defined benefit and money purchase benefits in separate sections in a pension scheme, which was contracted-out in relation to both sections.
GLOSSARY
This was the provision of money purchase benefits in a pension scheme that is contracted out.
GLOSSARY
Amount by which the employer’s and employee’s National Insurance contributions were reduced or rebated in respect of employees whose employment was contracted out by virtue of their membership of an appropriate pension scheme or an occupational pension scheme.