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Q&As
Unfair Contract Terms Act 1977 (UCTA 1977) In general, the Unfair Contract Terms Act 1977 (UCTA 1977) is primarily concerned with liability as between businesses. It provides protection to varying degrees in respect of specific types of liability. It does not deal with all types of liability (for example the law on penalty clauses is not covered by UCTA 1977), nor does it provide rules on the fairness of contract terms generally. To determine whether UCTA 1977 applies, it is therefore necessary to consider both the type of contract and the nature of the liability in question, and to consider both of these factors in light of the various provisions for application and exemption within UCTA 1977. UCTA 1977, s 1(1)(3) provides: ‘(3) In the case of both contract and tort, sections 2 to 7 apply (except where the contrary is stated in section 6(4)) only to business liability, that is liability for breach of obligations or duties arising— (a) from things done or to be done by a person in the course of a business
Q&As
In order for a landlord and tenant to validly agree to contract out of the protection of the Landlord and Tenant Act 1954 (LTA 1954), they must follow the procedure set out in LTA 1954, s 38A(3). The requirements for this process are set out in Practice Note: Contracting out of the Landlord and Tenant Act 1954—procedures, timing and pitfalls. Part of the process involves the tenant signing a simple or statutory declaration. The form of the statutory declaration is set out in the Regulatory Reform (Business Tenancies) (England & Wales) Order 2003, SI 2003/3096,
PRACTICE NOTES
This Practice Note analyses the term or duty of mutual trust and confidence (in a fiduciary sense) implied or imposed into every contract of employment. It considers the mutual or two-way duty of trust and confidence, which requires employer and employee not to conduct themselves, without reasonable and proper cause, in a manner calculated or likely to destroy or seriously damage the employment relationship. It considers breach of the term as grounds for constructive dismissal, the Johnson exclusion of damages, breach by the employee justifying summary dismissal, the relationship with express terms, whether breach is always repudiatory, intention, reasonable and proper cause and breach by the employer where the employee is already in repudiatory breach. The nature of the term or duty Every contract of employment is treated as containing a term of trust and confidence. This requires employers and employees not to conduct themselves, without reasonable and proper cause, in a manner calculated or likely to destroy or seriously damage the relationship of confidence and trust between employer and employee. The term can affect every
PRACTICE NOTES
This Practice Note looks at the FIDIC Conditions of Contract for Construction 1999, commonly known as the FIDIC Red Book 1999. FIDIC published a new edition of the Red Book in December 2017—see Practice Note: FIDIC contracts—introduction to the FIDIC Red Book 2017 for guidance on the 2017 edition. In relation to the 1999 suite, see also Practice Notes: FIDIC contracts—introduction to the Yellow Book 1999 and FIDIC contracts—introduction to the Silver Book 1999. For what type of project is the contract suitable? The FIDIC Red Book 1999 is recommended for building and engineering works where most (or all) of the works are to be designed by (or on behalf of) the Employer. The FIDIC Red Book 1999 is not suitable for use where the Contractor is carrying out most of the design—in this case, the FIDIC Yellow or Silver Book should be used instead. Like all the contracts in the FIDIC suite, the FIDIC Red Book 1999 is designed to be able to be used on international
NEWS
Construction analysis: The Technology and Construction Court found that a subcontractor breached its contract for the provision of monopiles for an offshore wind farm. The court confirmed that, in assessing their fitness for purpose, the goods had to be in a condition that any reasonable purchaser could, without further investigation, install them. It also held that the standard of good workmanship required the subcontractor to not only carry out the work with reasonable skill and care, but also to report known problems to the contractor, and to suggest solutions where appropriate. However, the subcontractor’s liability was reduced to the extent that the contractor had waived its claims in a settlement agreement.
Q&As
It has been assumed that this Q&A refers to validly created licences and individual IP right licence requirements (ie whether must be in writing and signed etc) have not been covered. As such in conducting our research, we have focused on IP licence agreements in which royalties are payable. There are many different types of UK IP licence. Such licences are governed by IP right specific laws such as the Copyright, Designs and Patents Act 1988, the Patents Act 1977 or the Trade Marks Act 1994. Technology transfer licensing is subject to UK and EU competition laws. Licences are also governed by common law. A perpetual licence may be granted (and the payment of royalties tied to the term of the licence). However, the period of the licence cannot extend the duration of the underlying IP right (for example for copyright this is the life
Q&As
The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR 2013), SI 2013/3134, regs 27–38 (Part 3) sets out the consumer’s right to cancel doorstep and distance contracts. Certain exclusions apply. For example, the cancellation rights do not apply to contracts to the extent they are excluded under CCR 2013, SI 2013/3134, reg 28, which
Q&As
The right under the Working Time Regulations 1998, SI 1998/1833 (WTR 1998) is to a total of 5.6 weeks' annual leave each 'leave year', made up of: • a 'basic entitlement' to a minimum of four weeks' annual leave (20 days for a regular full-time worker) each leave year, implementing the right to annual leave under article 7 of the Working Time Directive (WTD) • an 'additional entitlement' to 1.6 weeks' annual leave (eight days for a regular full-time worker) each leave year, which is a right under domestic legislation only Understanding this distinction is important because: • case law from the European Court of Justice (subsequently applied in our domestic courts and tribunals) concerns the operation of the WTD only, and as such is only relevant to the basic entitlement to four weeks' paid leave;
PRECEDENTS
ARCHIVED: This Precedent has been archived and is not maintained. STOP PRESS: As of 24 February 2025, the main provisions of the Procurement Act 2023 (PA 2023) are in force. Procurements begun on or after this date must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. [Insert name of successful tenderer] [Insert address of successful tenderer] By email: [Insert email address of successful tenderer] [Date] Our ref: [Insert contracting authority’s reference] Your ref: [Insert successful tenderer’s reference] Dear [insert representative name] [Contract
GLOSSARY
An agreement or contract to purchase all or a substantial amount of the product produced by a project, e.g. electricity from a power plant
PRECEDENTS
This Agreement is made on [date] Parties 1 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Outgoing Party); and 2 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Incoming Party); and 3 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Remaining Party), each of the Outgoing Party, Incoming Party and Remaining Party being a party and together the Outgoing Party, Incoming Party and Remaining Party are the parties. BACKGROUND (A) The Outgoing Party wishes to transfer, by way of novation, its rights and obligations under the Original Contract (as defined below) to the Incoming Party, in accordance with this Agreement. (B) The Outgoing Party wishes to be released and discharged from its[ future] obligations and liabilities under the Original Contract. (C) The Remaining Party agrees to release and discharge the Outgoing Party from its[ future]
PRACTICE NOTES
The concept of partnering developed as a result of the criticisms levelled at relationships in the construction industry by the Latham and Egan reports in the 1990s. Partnering emphasises collaborative working arrangements and continuous improvement through the measurement of performance and long term relationships and aims to avoid some of the problems that arise out of ‘traditional’ building contracts which, in some respects, seem to anticipate failure rather than promote success and improvement. PPC2000 is a standard form construction contract which embodies many of the partnering principles whose virtues were extolled by Latham. See Practice Note: Partnering. PPC2000 was commissioned by the Association of Consulting Architects (ACA) and written by Trowers & Hamlin LLP. It was first published in 2000 and subsequent editions have been published in 2003, 2008 and 2013. It was the first standard form partnering contract. The contract can, theoretically, be used for any type of project and in any jurisdiction. In the UK, PPC2000 is widely used in the public sector (particularly in relation to social housing projects) but has also been adopted on projects in