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PRACTICE NOTES
This Practice Note provides guidance on multi-party and/or multi-contract arbitrations pursuant to the Hong Kong International Arbitration Centre (HKIAC) Administered Arbitration Rules 2024 (the 2024 HKIAC Rules; HKIAC 2024). As discussed in Practice Note: HKIAC (2024)—the HKIAC Administered Arbitration Rules—application and key features, the 2024 HKIAC Rules apply (generally) to HKIAC arbitrations commenced on or after 1 June 2024, unless the parties agree otherwise; for HKIAC arbitrations commenced before 1 June 2024, the 2018 HKIAC Rules will apply (generally), unless the parties agreed otherwise. For an introduction to the HKIAC and its structure, see Practice Note: HKIAC—background to and structure of the institution. Traditionally, arbitration is based upon a contract between two or more parties where only those parties can be subject to the arbitration. This has led to situations where a party faces multiple claims in either multiple arbitrations or arbitration and litigation. Some arbitral institutions have therefore introduced provisions to allow for concurrency, consolidation
CHECKLISTS
This Checklist outlines some of the Engineer’s duties and authority under the FIDIC Red Book 2017 General Conditions of Contract. See also Practice Note: FIDIC contracts 2017—the role of the Engineer. In relation to the 1999 edition of the Red Book, see Checklist: FIDIC Red Book 1999—Engineer’s duties and authority. • Sub-Clause 1.3 The Engineer’s duty to comply with the Notice requirements when issuing a Notice. • Sub-Clause 1.5 The Engineer’s duty to issue clarification or instruction as to the priority of documents after receiving Notice of ambiguity or discrepancy or finding an ambiguity or discrepancy in the documents. • Sub-Clause 1.8 ◦ The Engineer’s right of access during normal working hours (or as otherwise agreed) to the Contract, the records under Sub-Clause 6.10 [Contractor’s Records] and Sub-Clause 20.2.3 [Contemporary records], the publications named in the Specification, the Contractor’s Documents, the Drawings and Variations, Notices and other communications given under the Contract. ◦ The Engineer’s duty to give Notice of an error or
PRACTICE NOTES
This Practice Note is a ‘how to’ guide on appointing a distributor. It includes a summary of what distribution is, an explanation of alternative routes to market, what to consider before selecting a distributor and practical guidance on negotiating a distribution contract. What is a distributor? Distribution is an arrangement under which party A, the distributor, buys goods from party B, a manufacturer, wholesaler or reseller, and resells them on its own behalf. Distribution is commonly used where a manufacturer needs help in bringing products to a particular market; for example, in an overseas territory with which the manufacturer is not sufficiently familiar or connected, or where the manufacturer does not have (and does not wish to maintain) a customer-facing market presence. A distributor buys from a manufacturer and sells to the customer as an independent contractor, applying a mark-up to the manufacturer's sale price. For this reason, a distributor is referred to as a reseller in some jurisdictions. Title to the products concerned passes to the distributor, and the distributor, not the manufacturer, has
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. FORTHCOMING CHANGE: Sections 224 to 251 of the Digital Markets, Competition and Consumers Act 2024 will, when the relevant sections are brought into force, repeal the Consumer Protection from Unfair Trading Regulations 2008 and replace them with broadly similar primary legislation to allow for stronger consumer law enforcement. The new regime will come into force on such day as the Secretary of State may by regulations appoint. This Practice Note looks at consumer protection legislation and how it relates to property, particularly conveyancing transactions. It primarily considers unfair contract terms and unfair commercial practices as addressed by the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008. Consumer protection legislation The main legislation The main legislation in relation to consumer rights protection in property law is: • Consumer Rights Act 2015 (CRA 2015), and • Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277, (CPUTR 2008) (as amended by the Consumer Protection (Amendment) Regulations 2014, SI 2014/870) Broadly
Q&As
Failure to serve a notice to complete in a timely fashion may impact on the remedies available to the non-defaulting party. Rescission of contract One implication is that, while the defaulting party will be liable in damages, the party that is able to complete cannot rescind the contract until they have served notice to complete. As set out in our Practice Note: Notice to complete: Time is generally not of the essence for completion of a contract for the sale of land. If the seller or the buyer delays completion, the defaulting party will be liable in damages (and for compensation under the standard conditions) but cannot rescind [ie terminate the contract immediately, forfeit or recover his deposit (as the case may be) with accrued interest and commence a claim for damages to recover his loss] until time is made of the essence of the
PRACTICE NOTES
This Practice Note discusses the role and importance of defined terms in an agreement. It identifies the defined terms that most commonly appear in agreements relating to transactions and examines the approach that should be taken when reviewing or drafting an agreement containing defined terms. For more information on the formation and interpretation of contracts generally, see Practice Note: Ireland—Contracts—formation and interpretation. The definitions and interpretation clause One example of a boilerplate clause is the definitions and interpretation clause. The definitions and interpretation clause should include all of the individual defined terms that are included in an agreement and all of the provisions that are to apply to the general interpretation of an agreement and, if necessary, of certain phrases used within it. The defined terms and the interpretation provisions will normally be set out in two separate sub-clauses. The definitions and interpretation clause will usually be found at the beginning of an agreement and the terms will be set out in alphabetical order for ease of reference. The purpose of defining terms is to avoid:
NEWS
Construction analysis: The Inner House confirmed a restrictive approach to the statutory exceptions interrupting or postponing prescription under the Prescription and Limitation (Scotland) Act 1973 (PL(S)A 1973). It held that GGHB’s claim for defective cladding, raised more than five years after practical completion, had prescribed. The court emphasised that PL(S)A 1973, s 6(4) requires clear proof of a positively induced error caused by the debtor and causative of inaction, which was absent on the facts. It further re-affirmed that, for (PL(S)A 1973), s 11(3), loss occurs on payment for defective works, regardless of knowledge of defect. The decision underscores the evidential burden on pursuers and narrows reliance on latent damage and inducement arguments in construction disputes. Produced in partnership with Eric Johnstone, legal director at Brodies LLP.
NEWS
Construction analysis: The Court of Appeal (CoA) dismissed both an appeal and cross-appeal in relation to the High Court’s calculation of damages in a case where the claimant’s mitigation actions resulted in an increased benefit to the company. The CoA applied the authorities in relation to mitigation losses and gains in a case concerning breach of fiduciary duty and professional negligence, and held that only benefits and losses flowing from a continuous course of conduct to deal with the breaches or negligence should be considered—once mitigation actions are complete, any further decisions by the injured party which incur costs or losses can not be taken into account in any damages claim. The CoA also held that the increased benefit amount must be deducted from the damages payable before applying a loss of a chance percentage. The CoA allowed a cross-appeal on a small point relating to interest.
NEWS
Construction analysis: The question of whether limitation applies to adjudication has long been a source of academic debate. In the first of three articles, James Frampton and Thomas Saunders, barristers at Keating Chambers, revisit this topic, following the Technology and Construction Court’s decision in LRJ Interiors v Cooper Construction.
PRACTICE NOTES
This Practice Note sets out an introduction to some of the most common agreements and documents within a PFI/PF2 project. The particular documents used will depend upon the project in question. In the 2018 Budget (delivered on 29 October 2018), it was announced that the government will no longer use PF2 on new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). However, existing PFI and PF2 projects will continue to run, and given the typical lifespan of such projects this is likely to be for many years. Project documents Project Agreement This is the principal agreement in any PFI project. It sets out all of the terms and conditions which govern the relationship between the Authority and Project Co/SPV for the duration of the project. The Project Agreement may be referred to as a concession agreement where the Project Co/SPV is being granted a concession (ie the exclusive right to supply/operate/exploit something to generate third party income). The Project Agreement is usually a lengthy document and for that reason is commonly split
PRACTICE NOTES
This Practice Note looks at Employer’s Requirements (also referred to as ERs) within a building contract. It explains what Employer’s Requirements are and how, depending on the procurement approach and the building contract, the party who will be responsible for them might vary. It also looks at the approach to Employer’s Requirements in some of the standard forms, and the impact of the CIS v Henry Boot case. What are Employer's Requirements? The expression 'Employer’s Requirements' (ERs) is used in JCT and FIDIC contracts to describe the document(s) produced by the employer to set out its requirements in relation to the project (including performance specifications, drawings, initial designs etc) and this is what the design and construction of the works will be based on. The approach in the NEC suite is slightly different: in NEC3 the documents that contain the ‘Works Information’ provided by the employer (ie that set out its requirements) are identified in Part One of the Contract Data. The NEC4 suite takes the same approach as NEC3 but the 'Works Information' is re-named