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FLOWCHARTS
This Flowchart provides an overview of the questions to be asked when determining the applicable law in employment cases, ie which system of law is applicable to a contract of employment or employment relationship. This is an area of law where Brexit does not have any significant practical impact. This is because Article 66 of the Withdrawal Agreement provided that the existing scheme in Rome I and Rome II will continue to apply even after IP completion day (11 pm on 31 December 2020). This has been given effect in domestic law by the Law Applicable to Contractual Obligations and Non Contractual Obligations (Amendment etc) (EU Exit) Regulations 2019, SI 2019/479, in force on IP completion day. Since 1 January 2024, Retained Regulation (EC) 593/2008, Rome I and Retained Regulation (EC) 864/2007, Rome II are known in the UK as Assimilated
Q&As
The underlying contract Initial considerations will need to be made around the type of contract under which the goods are being imported. Is it a generic contract for the sale and supply of goods, or are the goods being imported under an agency or
Q&As
To be caught by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 (the Consumer Contracts Regulations 2013), the arrangement must meet the definition of a distance or off-premises contract. Is this an off-premises contract? This arrangement does not appear to satisfy the definition of 'off-premises contract' for which there are four alternatives: Definition Example (a) Contract concluded somewhere other than at your business premises in the simultaneous physical presence of you and the client Retainer concluded:• at the client's home, place of work or a hospital • at a neutral venue, eg a hotel meeting room or café Note the requirement for the simultaneous physical presence of you and the client. (b) Contract for which an offer was made by the client
PRACTICE NOTES
Repudiation of a contract occurs where one party communicates to the other (through words or conduct) that they no longer intend to be bound by it, usually by committing a major breach of a significant obligation in the contract. The innocent party can then decide whether to: • elect to continue the contract and seek to enforce performance and/or claim damages (see Practice Notes: Specific performance of property agreements and Contractual damages—general principles), or • accept repudiation and treat the contract as at an end (known as rescission or discharge for breach). Both parties are discharged from further performance of the contract and the innocent party can sue for damages caused by the repudiation. There must be clear and unequivocal acceptance of the breach. Mere inactivity or acquiescence is generally not sufficient For guidance on ending a contract by serving notice to complete, see Practice Note: Notice to complete. Repudiatory breach To be repudiatory, the breach must go to the root of the contract. Its effect must be to: • deprive the innocent party of substantially
PRACTICE NOTES
This Practice Note considers the issues that arise in relation to illegal and unlawful contractual terms that may be encountered in an employment context, such as terms relating to pay which try to evade tax laws, contracts with people who are not legally entitled to work in the UK and contracts to do types of work which are illegal or contrary to public policy. The Practice Note also examines the effect of illegality, and of illegality by one party only, the lack of any requirement for knowledge of the illegality and the preservation of the right to bring discrimination claims. It covers the issue of public interest and the ‘trio of considerations’ set out by the Supreme Court in Patel v Mirza. Confidentiality provisions and contracting-out are also considered. The contract of employment may be tainted with illegality in the same way as any other contract. Traditionally, one of the most important areas of illegality in this context has been covenants in restraint of trade which will be unenforceable unless they fall within
PRACTICE NOTES
This Practice Note contains a jurisdiction-specific Q&A guide to commercial contracts in Armenia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020). Authors: Concern Dialog Law Firm—Aram Orbelyan; Lilit Karapetyan; Shushanik Stepanyan 1. Is there an obligation to use good faith when negotiating a contract? Armenian law does not currently recognise the obligation on contracting parties to use good faith when negotiating a contract. 2. How are ‘battle of the forms’ disputes resolved in your jurisdiction? To conclude a contract, it is necessary to have two or more declarations of intent, both corresponding with one another. It is commonly accepted that a contract is concluded if the parties have reached a consensus on the essential conditions of the contract. Under the Civil Code of Armenia, if an offer is made by one party, no contract is formed unless unconditional acceptance is given to all offer terms. If the terms of the response to the offer deviate from the offer in any manner, the response shall
CHECKLISTS
This Checklist outlines key provisions and issues for consideration when drafting and negotiating indemnity clauses in Irish law governed commercial contracts (ie business-to-business contracts). For further information on indemnities, see Practice Note: Ireland—How to review an indemnity clause. Legal issues General comments What to watch out for Is an indemnity appropriate? An indemnity is a contractual term under which a party promises to reimburse another in relation to specified loss or damage or, in some cases, to absolve them of liability.Unlike a guarantee, it creates a primary obligation which is not necessarily dependent on the default of a third party. Consider whether an indemnity is appropriate or whether a guarantee would be more suitable, for instance, where a parent company is guaranteeing the obligations of a subsidiary.If acting for the party giving the indemnity, consider whether the other party is adequately protected by other means, for example, by having a right to claim for contractual damages for breach of contract. For more information, see Practice Note: Ireland—How to review an indemnity clause. Who
PRACTICE NOTES
This Practice Note deals with taking security over contractual rights in general. It explains: • typical methods of taking security over contractual rights • key provisions to check in the contract which is to be assigned, including governing law, restrictions on assignment and contractual rights of set-off • key terms to be included in the security document • issues relating to serving notice of the security on the contract counterparty, and • perfection and priority issues Detailed information on assignments by way of security, including the differences between statutory and equitable assignments and the reasons for serving notice, is contained in Practice Note: Assignments by way of security. What are contractual rights and when is security taken over them? What is meant by contractual rights? Rights under contracts are intangible assets rather than tangible assets such as goods or land. They are what is known as a chose in action, meaning that they are recoverable by legal action. Contractual rights can include: • rights to payment of debts (known as receivables), including book debts
CHECKLISTS
This Checklist sets out the key issues and provisions to consider when drafting and negotiating the novation of a contract to a third party. For a precedent novation, see Precedents: • Novation agreement—long form • Novation agreement—short form • Deed of novation—long form • Deed of novation—short form • Short form letter of novation For information on novation generally, see: • Practice Note: How to novate a contract • Practice Note: Novation—why and how to novate a contract • Third parties, subcontracting and transfers—overview For guidance on novation in the specific context of the construction industry, see: Novation in construction projects—overview. Note that for contracts novated on or after 31 December 2018, the Business Contract Terms (Assignment of Receivables) Regulations 2018, SI 2018/1254 may render ineffective any restrictions on the assignment of receivables. For more information, see the drafting notes and optional clauses in Precedent: Assignment clause, and News Analyses: Updated draft regulations on business contract terms and Back for good—new Business Contract Terms (Assignment of Receivables Regulations) 2018. The Regulations
PRACTICE NOTES
This Practice Note considers heads of terms (also known as a memorandum of understanding (MoU), letter of intent (LOI), comfort letter, pre-contract protocol, term sheet or heads of agreement) in the context of commercial deals. It considers what heads of terms are, how the courts determine whether heads of terms are legally binding, the commonly used phrase ‘subject to contract’, creating legally binding provisions, the duty to negotiate in good faith, and provisions typically included. It also considers which terms are usually intended to be legally binding and provides drafting advice on what to consider and include. This Practice Note also considers how to supersede the heads of terms in the final contract. For heads of terms for a commercial deal and drafting notes, see Precedent: Heads of terms—commercial contracts. We have produced a collection which is a comprehensive, interactive resource to managing contracts at each of their key lifecycle stages: negotiation, creation, review, variation and termination. It provides an overview of the key considerations and the processes for negotiating, reviewing, varying, assigning, novating or terminating those contracts. Each section or phase includes practical
Q&As
Most contracts for sale of land will adopt standard conditions, modified as appropriate by the agreement of the parties. There are standard conditions in respect of both commercial and residential properties. The Standard Commercial Property Conditions (Second Edition) ('the Standard Conditions') came into force on 1 June 2004 and were replaced by the 3rd Edition in 2018. The provisions in respect of completion are broadly the same across these editions. See Practice Note: A review of Standard Commercial Property Conditions (Second Edition) and practical tips. The Standard Conditions
PRACTICE NOTES
The terms of an agreement may be so vague or uncertain as to be meaningless and therefore unenforceable. However, where parties have reached agreement, a court will strive to give that agreement meaning. This Practice Note sets out the nature of the certainty requirement and the ways in which courts have sought to limit its application. For guidance on the general approach when determining the existence of an enforceable contract and its terms, see Practice Note: Forming enforceable contracts—the court's general approach. Requirement of certainty—the basic principle A court will not enforce a contract to which no definite meaning can be given (G. Scammell & Nephew v Ouston). In Scammell, the House of Lords held that an agreement to acquire goods 'on hire-purchase' was too vague to be enforced because many kinds of hire-purchase existed on very different terms. As a result, it was impossible to ascertain on what terms the parties had agreed to contract. Parties must therefore take care to express the terms of their agreement in a way that is sufficiently