Novation Novation is the contractual mechanism used when A and B are party to an agreement and B 'transfers' their obligations and rights under the agreement to C, so that C 'steps into the shoes' of B, with a resulting contractual relationship between A and C. Novation amounts to the extinguishing of the original contract, and its substitution with a new contract, under which the same rights and obligations are to be performed but by different parties. The effect of a novation

We refer you to Practice Note: Termination of trusts—methods of termination, which sets out the circumstances in which a trust may be brought to an end. We refer you in particular, to section ‘Revocation’, which explains that, where an express trust is completely constituted, it is generally binding and irrevocable whether or not it was constituted or declared for valuable consideration. If the trust is validly created and the settlor is not a beneficiary, the settlor has no legal right to interfere with the trustees to change the terms of the trust or to terminate the trust, unless such rights are specifically reserved in the trust instrument. If the settlor has reserved a power of revocation, then such power must be exercised in the manner

Practice Note SDLT—common lease transactions—Variation of a lease explains that the variation of a lease is the acquisition and/or disposal of a chargeable interest (and therefore potentially subject to SDLT) only in the following circumstances: • it takes effect or is treated under the SDLT rules as the grant of a new lease • the lease is varied to reduce the amount of rent, in which case there is an acquisition of a chargeable interest by the lessee • the lease is varied to reduce the term of the lease, in which case there is an acquisition

Dispute Resolution analysis: In a recent judgment, the High Court considered, as a preliminary issue, the question of principle: does a default judgment obtained against one defendant preclude another defendant in the same proceedings from advancing, by way of defence to a claim against it, a case that is inconsistent with the default judgment that has already been obtained? In this article, we discuss the practical implications of the judge’s answer to this question and his consideration of the defendant’s alternative application to set the default judgment aside.

The pre-action protocols (Protocols) and, in the event that none of the specific pre-action protocols apply, the Practice Direction Pre-Action Conduct and Protocols (the Practice Direction), set out the conduct usually expected of parties prior to the issue of proceedings. An effective exchange of information is encouraged between the parties, with an important part of this process being the letter of claim, setting out the details of the claimant’s proposed claim, and the defendant’s response to that letter. In particular, para 6b of the Practice Direction states in respect of the defendant’s response that: ‘…The reply should include confirmation as to whether the claim

Once proceedings have started, section 51(1) of the Senior Courts Act 1981 applies. The effect of this is that, subject to any rules of court, the costs of and incidental to the proceedings are within the court’s discretion. Pursuant to CPR 7.2, proceedings are commenced for the purposes of the CPR and associated costs and procedural rules upon issue of the claim form. For further details, see: Starting a claim or counterclaim—overview. If the only claim is for a specified sum of money and the defendant pays the money claimed within 14 days after

The general rule, set out in CPR 15.4(1) is that the period for serving a defence is: • 14 days after service of the particulars of claim, or • if the defendant files an acknowledgment of service, 28 days after service of the particulars of claim However, the defendant and the claimant may agree voluntarily that the period for filing a defence specified above is to be extended by up to 28 days—so called buffer agreements (CPR 15.5(1)). Where the defendant and the claimant agree to an extension, the defendant must notify the court in writing. Further information is available in Practice Note: Agreements to extend time under CPR 3.8(4) (buffer agreements). If there is no agreement or the time for serving the defence has expired or a further extension is required, the defendant would need to obtain a court order allowing an extension of time. 'The defendant and claimant may only

The fact that a company is in liquidation or administration does not necessarily mean that it will have insufficient assets to meet an adverse costs order. Insolvent companies can have substantial assets and an adverse costs order made against the company in litigation will rank for payment in the insolvency ahead of the claims of other creditors—where a company in liquidation (acting by its liquidator) brings an unsuccessful claim, any adverse costs order would almost certainly be an expense of the liquidation and payable in priority to an ordinary distribution to unsecured creditors. For further information on this area, see Practice Note: What counts as an expense?. However, defendants often seek a security for costs order where the claimant is insolvent

In June 2015, the Law Society published Guidelines for lawyers in dealing with litigants in person. You will find this guidance of assistance in setting out how you should deal with a litigant in person when acting for one of the other parties. In particular, please note the following (references are to the Law Society Guidelines unless otherwise stated): • lawyer’s duty—a lawyer’s paramount duty is to the court and to the administration of justice and this duty may operate to the potential disadvantage of the client. Subject to this paramount duty, the duty is to their client (paras 7 to 9 and section 1(3) of the Legal Services Act 2007) • assisting litigants in person—lawyers are under no obligation to help a litigant in person to run their case or to take any action on their behalf. By doing so, a lawyer could

Every company having a share capital has a duty to send a copy of its annual accounts and reports for each financial year to every member of the company, every debenture holder, and every person who is entitled to receive notice of general meetings (see section 423 of the Companies Act 2006 (CA 2006) and Practice Note: Publication and laying of annual accounts and reports, which also covers the offences committed by a failure to publish accordingly). In addition, any member of a company and any holder of the company's debentures has a right to be given on demand, and without charge, a single copy of the company's last annual accounts, strategic report (unless the company does not have to prepare one), directors' report and auditor's

Severing a joint tenancy Section 36(2) of the Law of Property Act 1925 (LPA 1925) allows one joint owner to serve a written notice on the other joint owners, severing their joint tenancy in equity. Further information on the methods by which a joint tenancy can be severed can be found in the Lexis®PSL Property Practice Note: Severance of a joint tenancy. Deputies’ powers It will be necessary to start by looking at the deputyship order to see the scope of the deputy’s powers. See Practice Note: The deputyship order, which sets out: ‘Since the introduction of the Mental Capacity Act 2005 (MCA 2005), deputyship orders are in most cases widely drafted and, subject to any specific restrictions in the order itself or imposed by the MCA 2005, leave the deputy free to work within the framework of the MCA 2005, exercising his authority to the extent necessary and acting in the best interests

This Q&A relates to the powers accruing to deputies to engage in litigation on behalf of a patient (referred to as 'P' for the remainder of this answer) without being appointed a litigation friend. A deputy is a person appointed by the Court of Protection to enable that person to make certain decisions for someone else who lacks capacity. There are two types of deputy; a property and financial affairs deputy, who is able to make decisions on behalf of P relating to their assets and money, and a personal welfare deputy, who is able to make decisions about matters including medical treatment. Upon a grant, the Order of the Court of Protection will ordinarily specify the powers that can be exercised by the deputy, which may specifically allow the managing of court proceedings. Section 18 of the Mental Capacity Act 2005 (MCA 2005) makes clear that the powers in respect of property