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PRECEDENTS
This Precedent is a pro-forma letter for an employer to send to an employee or director, placing that employee/director on garden leave under the terms of a garden leave clause in the employee’s contract of employment or service agreement. The letter reminds the employee of the relevant terms and restrictions set out in the contract of employment or service agreement. The letter may be sent after notice has been given by either the employer or by the employee: the relevant alternative wording in the first paragraph should be selected as appropriate. The letter also has the option of reminding the employee/director of the terms of any post-termination restrictions (restrictive covenants). An express gardening leave clause in a contract of employment or service agreement agreed with an employee can provide protection for an employer from damage caused by a valuable employee resigning. The employee can be required to remain at home and not enter the workplace during the notice period. Usually, the terms of the garden leave will provide that the employee
PRACTICE NOTES
The Renting Homes (Wales) Act 2016 (RH(W)A 2016) received Royal Assent on 18th January 2016 and came into force on 1 December 2022. RH(W)A 2016 substantially reformed the way in which properties in both the public and private sectors are let in Wales. It replaced various and complex pieces of legislation with one legal framework with the aim of making the process simpler and easier and providing flexibility and transparency. Guidance on renting homes has been produced by the Welsh Government and is available here. Note that this Practice Note is primarily aimed at private sector landlords and tenants (who would previously have entered into assured or assured shorthold tenancies) although many of the provisions of RH(W)A 2016 covered in this note apply to both public and private sector lettings. For further content on public sector lettings, see Practice Notes: Renting Homes (Wales) Act 2016—when are occupation contracts secure? and Renting Homes (Wales) Act 2016—terms of secure contracts. The occupation contract Secure and standard contracts RH(W)A 2016 replaces nearly all previous
Q&As
Property held in joint ownership in England and Wales is held in two ways: legal ownership and beneficial ownership. The legal owners of the property are those who hold the legal title to the property in question. Often, but not always, the legal and beneficial owners will be one and the same. The legal owners hold the property on trust for the beneficial owners who are the true owners of the property. The trust may be declared expressly (in accordance with section 53(1)(b) of the Law of Property Act 1925 (LPA 1925)), or may arise as the result of conduct, or may be imposed
NEWS
Arbitration analysis: In a dispute over OneCoin cryptocurrency, a UAE court (Ras Al-Khaimah Primary Court) ordered the invalidation and rescindment of a cryptocurrency sale contract on the basis that the cryptocurrency transacted (OneCoin) was not a recognised currency or commodity in violation of Shariah rules and the Civil Transactions Law. Mahmoud Abuwasel, managing partner at Wasel & Wasel examines the decision.
CHECKLISTS
This Checklist outlines key provisions and issues for consideration when drafting and negotiating a price clause in a business to business contract. For a simple example of a Precedent price clause, see Precedent: Template agreement—mutual, clause 6. For examples of more complex Precedent price clauses together with detailed drafting notes, see Precedent: International supply of goods agreement—business-to-business, clause 13 and Services agreement (ongoing supply)—balanced, clause 9. For a price variation clause, see Precedent: Price variation clauses. For a payment by letter of credit clause, see Precedent: Payment by letter of credit clause. For information on price clauses, see Practice Note: Price, payment terms and interest. Payment and price provisions in a contract are often interlinked. When using this checklist, also consider using: Drafting and negotiating a payment clause—checklist. See also Practice Note: Price and payment in commercial contracts—FAQs. Legal Issues General comments What to watch out for Basis of calculation: time and materials or fixed price Where fixed prices are used, these are commonly expressed by reference to a schedule (see for example Precedent:
NEWS
This week's edition of Construction weekly highlights includes a landmark case in which the Supreme Court considered whether a collateral warranty constitutes a construction contract for the purposes of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) (Abbey v Augusta (formerly Simply Construct)), the release of the 2024 versions of the JCT Intermediate Contract suite, analysis of likely developments in the built environment sector under the new Labour government, an analysis of the new Building Regulations Principal Designer Professional Services Contract produced by the Royal Institute of British Architects (RIBA) and commentary on the Housing (Cladding Remediation) (Scotland) Act 2024 (H(CR)(S)A 2024).
NEWS
Commercial analysis: A trade mark licence which was expressed to ‘continue indefinitely’ was not to be construed as being in perpetuity or incapable of being terminated without some other factor supporting that interpretation. The Court found such a term enabling termination to exist as part and parcel of the construction exercise. Accordingly, the licence was terminable on reasonable notice at any time by either party even where the licence included express termination rights only for the licensor. Written by Andrew Mace, barrister at Tanfield Chambers.
NEWS
Employment analysis: Following the General Election on 4 July 2024, the Labour Party will form the new government. The Labour Manifesto was published on 13 June 2024 and promised a number of reforms for working people and a commitment to implement, in full, pledges made in the earlier ‘Labour’s Plan to make work pay: Delivering a new deal for working people’. Just a few of the key reforms expected include the removal of the qualifying period for bringing unfair dismissal claims, an extension of employment tribunal time limits for bringing claims from three months to six months, and significant reforms relating to trade unions. Employment legislation is expected to be introduced within the first 100 days of the new parliament.
NEWS
Employment analysis: The approach of the Supreme Court in Patel should be applied in employment cases dealing with illegality but the principles in previous employment law decisions, such as Hall and Helbawi, remain of value unless it can be shown that they are not compatible with the Patel approach, according to the Court of Appeal.
NEWS
Commercial analysis: Oliver Browne, a partner at Latham & Watkins (London) LLP, examines a High Court decision that the defendant property owner had validly terminated its agreements with the claimant property management companies. After the defendant had given notice of termination on the grounds of various breaches concerning the claimants' designated person responsible for performing the services under the agreements, the court found that the defendant had not accepted that that person was to be replaced, had not affirmed the agreements and was not estopped from alleging that the claimants had acted in breach of the agreements.
Q&As
This Q&A assumes that the query relates to a business-to-business commercial agreement. When considering drafting a termination notice, it is essential to check that: • there is a valid basis for terminating the agreement • where there are multiple grounds (or contractual clauses) for terminating, that you select the most appropriate basis • you consider whether the circumstances are such that there are both express contractual rights and
PRECEDENTS
Dear [insert name of authorised recipient on behalf of counterparty], [insert name of agreement]: [insert client name] and [insert counter-party name] 1 We refer to our letter dated [insert date] (breach notice) regarding the [insert agreement name] dated [insert date] (Agreement) between [insert client name] (our client) and [insert counter-party name] ([insert counter-party short name]). 2 In the breach notice our client asserted (among other things): 2.1 [insert