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PRACTICE NOTES
This Practice Note is for use when determining applicable law where the contract was entered into between 17 December 2009 and before 1 January 2021. For contracts entered into on different dates, a different applicable law regime will be applied by the UK courts. Which regime will apply, will depend on the date on which the contract was entered into. For guidance, see Practice Note: Applicable law regimes. This Practice Note considers the general provisions in Regulation (EC) 593/2008 on the law applicable to contractual obligations (Rome I). It covers the following: Overriding mandatory provisions (Article 9), Consent and material validity (Article 10), Formal Validity (Article 11), Scope of Law Applicable (Article 12), Incapacity (Article 13), Voluntary Assignment/ Contractual Subrogations (Article 14), Legal Subrogation (Article 15), Multiple Liabilities (Article 16), Set-off (Article 17), Burden of proof (Article 18), Habitual Residence (Article 19), Exclusion of Renvoi (Article 20) and Public Policy (Article 21). For other aspects of the regulation, see Practice Note: Applicable law—a guide for dispute resolution practitioners. The impact of the UK’s
PRACTICE NOTES
This Practice Note describes what an actionable misrepresentation is and the key ingredients required for bringing a claim for misrepresentation, the role of the Misrepresentation Act 1967 (MA 1967) and provides a comparison with other similar claims. For related guidance on the key elements required to establish a claim for misrepresentation, see Practice Notes: • Misrepresentation—what statements will establish a claim? • Misrepresentation—what is inducement? • Misrepresentation—falsity (fraudulent, innocent or negligent misrepresentation) For a summary of the practical considerations in misrepresentation claims contrasted with negligent misstatement claims, see Practice Note: Claiming negligent misrepresentation or negligent misstatement—practical considerations. What is a claim for misrepresentation? A claim for misrepresentation arises where one party to a contract (the representor) made an untrue statement that induced the other party (the representee) to enter into the contract. A claim may be made where the representation is made by one contracting party's agent or even, in limited circumstances, where it is made by a third party, see Practice Note: Who can be a party to a claim for misrepresentation? Where
Q&As
Fees to work-seekers Under section 6 of the Employment Agencies Act 1973 (EAA 1973), it is an offence for a person carrying on an employment agency (eg a recruitment agency) or employment business (sometimes known as a temporary work agency, or temping agency) to request or receive a fee from a work-seeker for providing work-finding services. For further information, see the section of Practice Note: Employment agencies and employment businesses entitled ‘Requirements before services provided’. The exceptions to this general prohibition are set out in the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations 2003), SI 2003/3319, Sch 3. See the section of Practice Note: Employment agencies and
Q&As
In answering this Q&A we have limited our research to cover charging orders over property. We assume you are referring to a charging order obtained over the judgment debtor’s beneficial interest in the property and there in conducting our research, we have focussed on charging orders over beneficial interests. Can you have a charging order over a beneficial interest? A charging order over land must be protected by registration at every stage of the process of obtaining the order to secure the priority of the order over competing interests and to ensure that the order is not void as against a purchaser for value. However, the correct form of protection will vary depending upon the interest in land charged. For the purposes of registration, the key distinction is whether the charging order affects
FLOWCHARTS
This flowchart illustrates a generic, payer-led payment process under a construction contract between an employer and contractor. The process is compliant with
PRECEDENTS
[To be typed on employer’s headed notepaper] [Enter employee name] [Enter employee address] Confidential: addressee only [Date] Dear [enter name of employee] Proposed change to your [ contract of employment OR [enter details, eg holiday entitlement]] I refer to our meeting on [enter date]. [Set out details of any prior consultation process that has taken place.] As I explained at that meeting, the Company has been reviewing its business priorities in relation to [enter details of any specific business areas that are relevant, eg sales support, business administration] in light of [enter details of the reason why the employer needs to make the proposed changes, eg the need to harmonise the terms and conditions of employees across its business, the substantial downturn in the business over recent months]. As I also explained, the Company has decided that, as a result of that review, the needs of the business require that [enter details of the proposed changes, eg the paid holiday entitlement of some employees be reduced from 30 days to 25 days]. [The Company has considered alternatives
Q&As
In the absence of any agreed definition, where the phrase 'consequential loss' (or 'indirect loss') is used in a commercial contract, it has generally been regarded as referring to losses within the second limb of Hadley v Baxendale. The court in Hadley v Baxendale held that damages for breach of contract: ‘should be such as may be fairly and reasonably considered either arising naturally, that is according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it’ The court created a ‘two limb test’ to understand whether a loss is too remote to be consequential, and therefore not recoverable. The first limb is the knowledge of what happens in the ordinary course of things, which is imputed to the parties whether or not they knew it. The second limb is
PRACTICE NOTES
Contracts are often drafted on the basis that one or more conditions must be satisfied before completion takes place or before the relevant agreement comes into effect (a condition precedent). Common conditions are: • obtaining planning permission • obtaining a third party’s consent (for example superior landlord’s consent) • carrying out works • a viability or site assembly condition It is crucial that the terms of the condition are clear and that the contract addresses how, when and by whom the condition should be satisfied. In addition, the contract should state whether a party has the ability to waive the condition and should also contain termination rights if the condition is not satisfied by a specified date. Certainty If the condition is so vague or indefinite that the intention of the parties’ cannot be ascertained with reasonable certainty, the condition is void for uncertainty: see Lee-Parker v Izzet, (where the contract provided that a sale was subject to the buyer obtaining a satisfactory mortgage). Fulfilment If fulfilment of the condition is the sole responsibility
PRECEDENTS
Agreement in relation to [insert brief details of the works/project] at [insert address of works] (Incorporating (inter alia) the NEC4 Engineering and Construction Contract 2017 with January 2019 Amendments, October 2020 Amendments and January 2023 Amendments as modified and supplemented in the manner indicated in this Agreement and the Schedules hereto). This Agreement is made on the [insert number] day of [insert month] 20[insert year]. Parties 1 [insert name of the Client] (company registration number [insert number]) whose registered office is situated at [insert address of the Client] (‘the Client’), 2 [insert name of the Contractor] (company registration number [insert number])
Q&As
For information about employing young people, generally, see Practice Note: Employing children and young people. The duty on a young person in England to participate in education and training When it comes to the duty in England for a young person to participate in education and training, a person has such a duty if they: • have ceased to be of compulsory school age • have not reached the age of 18, and • have not attained a ‘level three qualification’ (two A-levels, or various other broadly equivalent qualifications) The
NEWS
Local Government analysis: In this case, the claimant competed for a contract for the supply and maintenance of fleets of tractor cabs and trailers to a council-owned operator of waste processing facilities. Its tender was disqualified. It concurrently issued a claim in the Technology and Construction Court (TCC) under the Public Contracts Regulations 2015 (PCR 2015), as well as a claim for judicial review in the administrative court. The TCC dismissed both claims as being out of time. The court distilled the principles governing limitation and applications for extensions of time in the two different kinds of procurement challenge. Written by Jonathan Lewis, barrister, at Henderson Chambers.
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] [Date] Our