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Q&As
Where an employer fails to pay sums owing under a settlement agreement, the employee may seek to enforce their rights by bringing a claim for breach of contract. A claim for breach of contract may only be brought in the employment tribunal if: • it is not a claim for breach of a contractual term:
PRACTICE NOTES
The expression of audit rights in a contract, and the requirement to maintain records relating to that contract in a particular manner, are an essential component of any outsourcing. Effective oversight allows a customer to ensure that services are being performed as expected and provides an opportunity for the supplier to demonstrate compliance with the contract. This Practice Note considers the following key issues in relation to record retention and audit rights in outsourcing transactions: • Initial considerations • How long should records be kept? • Audit rights • Consistency with other terms of the contract • Supplier's perspective For examples of drafting that can be used in record retention or audit provisions of an agreement, see clauses 22 (Records) and 23 (Audit) of Precedent: Outsourcing agreement—long form. Initial considerations There are several key questions that the parties will need to answer in order to determine what is appropriate in any given situation: • What are the record retention requirements for each of the customer and the supplier both at law and in relation to internal policies?
NEWS
Public Law analysis: In dismissing Cornwall Council’s judicial review, the Administrative Court upheld the Secretary of State’s recovery of more than £2.12m in European Regional Development Funding (ERDF) funding arising from an unlawful direct award and a discriminatory Cornish sub-consultant requirement. Although the Secretary of State had erred in treating the principal contract as above threshold, the error was immaterial because Treaty principles independently required advertising. The judgment confirms that convenience, funding pressures and an existing contractor’s familiarity do not establish genuine technical reasons justifying a direct award, and that local economic objectives cannot justify discriminatory procurement criteria. It also underlines the continuing effect of EU procurement rules for legacy ERDF projects and the procedural rigour required when seeking late amendments in judicial review. Produced in partnership with Kate Davies, Brogan Cheshire and Rebecca Malone of Osborne Clarke LLP.
Q&As
If the employer gives shorter notice of termination than they are required to give under the employment contract (or no notice), the employer will have dismissed the employee in breach of the contract of employment, ie this will be a wrongful dismissal. For information: • on contractual notice generally, see Practice Note: Contractual notice • on wrongful dismissal, see: Wrongful dismissal—overview For the purposes of an unlawful deductions claim under section 27 of the Employment Rights Act 1996 (ERA 1996), wages are essentially payments in respect of services rendered, so that
PRECEDENTS
The World Intellectual Property Organization (WIPO) model arbitration clauses are as follows. Arbitration Any dispute, controversy or claim arising under, out of or relating to this contract and any subsequent amendments of this contract, including, without limitation, its formation, validity, binding effect, interpretation, performance, breach or termination, as well as non-contractual claims, shall be referred to and finally determined by arbitration in accordance with the WIPO Arbitration Rules. The arbitral tribunal shall consist of [[a sole arbitrator OR three arbitrators]]. The place of arbitration shall be [specify place]. The language to be used in the arbitral proceedings shall be [specify language]. The dispute, controversy or claim shall be decided in accordance with the law of [specify jurisdiction]. Expedited arbitration Any dispute, controversy or claim arising under, out of or relating to this contract
PRACTICE NOTES
The right to be paid wages in full is one of the most basic, and oldest, employment rights. A failure to pay will generally give a worker the right to bring a claim for unlawful deduction from wages. In a small number of cases, however, an employer is permitted to make a deduction. The worker's rights An employer may not make a deduction from the wages of any worker employed by the employer, or receive a payment from such a worker, unless: • it is required or authorised to be made by virtue of any statutory provision or any relevant provision of the worker's contract, or • the worker has previously signified in writing their agreement or consent to the making of it For further information, see: When deductions are lawful below. For further information: • on the meaning of 'wages' see: Definition of wages below • on the definition of 'worker' for these purposes, see: Definition of 'worker' below • on the circumstances in which deductions are permitted, see: Excepted deductions and payments below • on
Q&As
This Q&A considers whether if a sales contract contains a warranty that a fixture has been properly maintained, but it has not in fact been properly maintained, the fact that the fixture would have needed to be replaced shortly after the sale even if it had been maintained is a proper defence to a claim for breach of warranty. It assumes that the sale contract is for the sale of real property including the fixture. What is a fixture? A fixture is a chattel or good which has been fixed to land or a building so as to become part of the land/building. A key characteristic of a fixture is that ownership of a fixture passes with the property. Whether something has been affixed to property so as to become a fixture is a question of fact and depends partly
PRECEDENTS
1 [Save in respect of the rights granted by
PRACTICE NOTES
Introduction This Practice Note is part of our LLB Contract Law suite, geared specifically towards students. In contract law, a vitiating factor is something that spoils or impairs the legal validity of the consent required to form a valid contract. One vitiating factor is misrepresentation, in which one party makes a statement to another which is not true. This Practice Note explains misrepresentation as a vitiating factor in English contract law, focusing on how false pre-contractual statements undermine genuine consent and render contracts voidable (rather than void). It sets out the elements of actionable misrepresentation (a false statement of fact or law, inducement and attribution), distinguishes between fraudulent, negligent and innocent misrepresentation, and analyses the leading cases and statutory framework under the Misrepresentation Act 1967. The Practice Note gives particular attention to remedies, especially rescission and damages, and the equitable bars to rescission (affirmation, lapse of time, impossibility of restitution, third-party rights and judicial discretion). Throughout, it integrates key judicial reasoning, policy considerations and exam-focused guidance, showing how modern case law balances fairness to the misled party with certainty
PRACTICE NOTES
This Practice Note explains the differences between the assessment of costs on the standard basis compared to the indemnity basis. It also considers costs payable pursuant to contract and the fact that the court is not required to make an assessment of these costs (CPR PD 44, para 7.1). Information is also provided on the choice of legal representative and the effect this has on the reasonableness of the costs claimed. When seeking to recover costs incurred in the proceedings, it is generally the case that the amount of recoverable costs will be less than the amount of costs that have actually been incurred. In many cases, costs are assessed by the court where they cannot be agreed by the parties. For guidance on the different types of assessment, see: • Summary assessment—overview • Practice Note: Provisional assessment • Detailed assessment—overview Note, costs will only be recoverable to the extent that they do not infringe the indemnity principle, see Practice Note: Costs and the indemnity principle. Basis of assessment The courts have a discretion whether to make an order for costs
PRACTICE NOTES
This Practice Note considers the legal and practical aspects of setting up, managing and terminating a secondment, and identifies key issues to be dealt with when it comes to drafting or reviewing a secondment agreement. An employee is typically placed on secondment if they are temporarily assigned to work for: • a different part of their employer’s organisation • a different employer in the group, or • a client or customer of their employer It follows, therefore, that there are potentially three parties involved in a secondment arrangement: • the individual employee placed on secondment, referred to in this Practice Note as ‘the employee’ or ‘the secondee’ • the secondee’s original employer, referred to as ‘the employer’ or ‘the original employer’, and • the organisation to which the secondee is seconded, referred to as ‘the host’ In an internal secondment, where there is no external host, the parties will be the secondee and the employer. A secondment arrangement can involve more than one employee (and sometimes a large number of employees) being placed on the same secondment,
NEWS
Construction analysis: The Technology and Construction Court (TCC) found that a contractor was liable both in respect of issues regarding installation and the initial specification of a cladding system in five residential tower blocks. The works were initially carried out in 2005–2008, and the breaches were discovered following an examination of the system after the Grenfell Tower fire in 2017. In an extensive judgment, Judge Davies also considered a number of issues around causation and remoteness of damage arising in relation to the works. Though dependent on the specific facts, this case provides a useful insight into how the court may interpret claims which may arise on the liability which an original contractor has for cladding installed prior to the Grenfell Tower fire.