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Q&As
Repudiation of a contract occurs where one party through words or conduct tells the other that they no longer intend to be bound by the contract, usually by committing a major breach of a significant obligation in the contract. To be repudiatory, the breach must go to the root of the contract. Its effect must be to: • deprive the innocent party of substantially the whole benefit that it was intended, as expressed in the contract, that they should obtain, or • render them incapable of performing their own obligations The test of whether a repudiation of a contract has occurred
Q&As
You may wish to consider the employment status of an individual supplying services through a personal service company (PSC) separately, depending on whether determining status is for the purposes of employment rights, and for tax purposes. Although HMRC takes a similar approach to the employment tribunals in determining employment status, they may well reach different conclusions on the same facts. The fact that an individual is regarded as self-employed for tax purposes does not mean that they will not be regarded as an employee for unfair dismissal or redundancy purposes. For further information, see Practice Note: Employee status—Employee status for tax purposes. There are two ways in which the individual may establish employment rights against the client company: • in the absence of any express agreement between them, by proving to the court that there is an implied contract between the client company and the individual • by satisfying the eligibility requirements of
Q&As
It will be necessary to consider the terms and conditions attached to the quote, and identify whether any of the terms make the quote capable of acceptance or not. The following materials outline the essential ingredients of a legally binding contract. In summary, the basis of English contract law is that a contract is formed when: • a valid offer is accepted. It will be important to ensure that an offer has been made as part of the quote as opposed to an invitation to treat. Invitations to treat are made where the invitee does not intend to be bound. The distinguishing factor between an offer and invitation to treat is that an offer can be accepted and such acceptance will result in a contract, whereas an invitation
Q&As
Where a tenancy regulated by the Rent Act 1977 has expired and a statutory tenancy has arisen, it is a condition of security of tenure that the tenant remains in occupation of the property ‘as their residence’: section 2(1)(a) of the Rent Act 1977 (RA 1977). As explained in Commentary: Residence: Claims to the Possession of Land [C2.4], ‘Any break in residence
Q&As
This was the question addressed by the House of Lords in Hunter v Canary Wharf. It was held that interference with television signal by a new building was not actionable, as TV reception was akin to a view (which is not
Q&As
Negative pledge A negative pledge is a contractual undertaking. In lending transactions, such a clause would typically prevent the borrower from creating security over or disposing of its assets. For an example of such a clause, see clause 5.1.2 of Precedent: Real property mortgage: single company chargor—bilateral—specific monies. However, some negative pledge clauses go further, for example, by stating that if security is deemed to be granted to another party in breach of the negative pledge clause, the original lender is granted security over the same assets on a pari passu basis. The reasons for including a negative pledge clause in finance documents include: • ensuring the lender’s repayment priority • preventing the borrower incurring significant credit without the knowledge of the lender • protecting a lender’s floating charge Breach of a negative pledge clause may enable the lender to: • call
Q&As
Section 199 of the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) creates the corporate offence of failure to prevent fraud—see Practice Note: Failure to prevent fraud—the offence.  The offence makes a relevant body (a large organisation) criminally liable for the acts of ‘associated persons’ where those associated persons commit a fraud offence with the intention of benefitting, directly or indirectly, the relevant body or those that use its services. ECCTA 2023, s 199(7) defines an ‘associated person’ as an employee, agent or subsidiary undertaking of the relevant body, or a person who performs services for or on behalf of the relevant body. ECCTA 2023, s 199(9) states that whether or not a particular person performs services for or on behalf of a relevant body is to
Q&As
A testator has one legitimate daughter (adult) who he has always had a close relationship with. He also had two other daughters (now adults) who were illegitimate. He has never provided any financial support to the two illegitimate daughters. They have never had any relationship with him. It has been about 30 years since he has seen them. He made a Will with a solicitor about three years ago but he does not think he discussed the fact he had two illegitimate daughters with the solicitor as he did not think this was relevant. He has left everything to his legitimate daughter. Could his failure to provide this information to the solicitor cause the validity of the Will to be questioned by the illegitimate daughters and potentially result in a successful claim against the estate? The starting point is that in English law the testator is free to
Q&As
Acas-conciliated (COT3) agreements Almost all claims that may be brought in the employment tribunal derive from a jurisdiction created by statutory provisions. Each such set of statutory provisions will include a provision that prevents the parties (or potential parties) to an employment tribunal claim from reaching an agreement that purports to settle the claim and, in so doing, purports to have the effect of ousting the jurisdiction of the employment tribunal to adjudicate upon the dispute. These provisions are usually referred to as 'contracting-out provisions', and they appear in similar form in a wide variety of employment legislation, eg in the Employment Rights Act 1996 (ERA 1996). The contracting-out provisions work by imposing a basic rule that any agreement reached between persons that purports to prevent a person from making, or proceeding with, a claim to an employment tribunal is void to that extent. However,
Q&As
The powers of the trustee as provided by the clause highlighted in this Q&A will depend on the circumstances of the trust deed as a whole and we are unable to provide legal advice as to how the courts would treat a particular clause. However, see the following sources and materials which may be useful . The clause highlighted above could be categorised either as a power of appointment or a power of advancement, and this categorisation will inform the scope of the duties and powers of the trustee over the trust property. Powers of appointment A power of appointment is a power given by one person to another to declare how property is to be held. There are three different types of powers of appointment:
Q&As
The extended fixed recoverable costs (FRC) regime has introduced three significant changes. An introduction of a new track to classify cases, an expansion of the types of claims captured by fixed recovery costs, and a change in the value of recoverable costs. As a result, an IP dispute has the potential to be caught by the extended regime. The new rules classify cases into four distinct tracks—the small claims track, the fast track, the intermediate track and the multi-track. Allocation is dependent on the amount in dispute which is then further classified into a complexity band within the specific track. All cases classified into the fast track and intermediate track are covered by the new regime. For a case to be assigned to the fast track, the value must be between £10,000 and £25,000 and for a case to be classified into the intermediate track, the claim must be unsuitable
NEWS
Crime analysis: Following the failure of a millionaire fraudster to renounce his British citizenship, Sian Hall of Farleys’ business crime, fraud and regulatory group says the Serious Fraud Office (SFO) will take considerable action to ensure custodial sentences are served and confiscation orders are paid.