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Incapacity does not automatically have the effect of discharging P as a trustee. Frequently, P may have delegated their functions as a trustee to an attorney in which case an application to the Court of Protection under section 18(1)(j) of the Mental Capacity Act 2005 (MCA 2005) may be unnecessary. Prior to the coming into force of section 4(1) of the Trustee Delegation Act 1999 (TDA 1999) on 1 March 2000, section 3(3) of the Enduring Powers of Attorney Act 1985 permitted delegation of the donor’s functions as a trustee to their attorney to exercise for an unlimited time. TDA 1999, s 4(1) was repealed by MCA 2005 so that TDA 1999 will cease to apply to Enduring Powers of Attorneys (EPAs) but MCA 2005, Sch 5, Pt 1, para 14(2) provides that TDA 1999, s 4(2)(a) and (3) will continue to apply to EPAs for which an application
Q&As
Does section 196 of the Law of Property Act 1925 (LPA 1925) apply to LPA 1925, s 136? In Practice Note: Transferring a loan by legal assignment, the section ‘Transferring a loan by legal assignment—Requirements for a valid legal assignment’ refers to section 136 of the Law of Property Act 1925 (LPA 1925). Under LPA 1925, s 136(1) the assignment must be notified to 'any person from whom the assignor would have been able to claim such debt', ie the borrower and any guarantors. LPA 1925, s 196 applies to: • ‘Any notice required or authorised by this Act to be served…’ on a ‘…lessee, lessor, mortgagee, mortgagor, or other person to be served…’ (LPA 1925, s 196(3) and (4)) • notices required to be served by any instrument affecting property executed or coming into operation after commencement of the LPA 1925, unless a contrary indication appears (LPA
Q&As
This Q&A raises the circumstances in which the deeming provisions of section 196 of the Law of Property Act 1925 (LPA 1925) can be relied upon. LPA 1925, s 196 provides that any notice is sufficiently served if it is ‘left at the last-known place of abode or business in the UK of the lessee’ or is ‘affixed or left for him on the land or any house or building comprised in the lease’ (LPA 1925, s 196(3)). It also provides that any notice shall also be sufficiently served if it is: ‘…sent in a registered letter addressed to the lessee...by name, at the aforesaid place of abode or business…and if that letter is not returned by the postal operator (within the meaning of the Postal Services Act 2000) concerned undelivered;
Q&As
Depending upon the precise nature of the claim, in normal circumstances claims for wages may be brought as: • a claim for unlawful deduction from wages (under section 23 of the Employment Rights Act 1996 (ERA 1996)) • a claim for breach of contract, or • a claim for breach of the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, if the outstanding pay relates to statutory holiday entitlement (WTR 1998, SI 1998/1833, reg 30) The question therefore is whether all or any of these claims can be pursued against a deceased employer? Background to legal impact of employer’s death on employment relationship At common law, where an employer is a natural person (as opposed to a legal person, such as a corporate entity or partnership), the death of the employer frustrates the contracts of employment of all the employer’s employees and so the contracts terminate with immediate effect. Frustration is a termination
Q&As
Section 21(4ZA) of the Housing Act 1988 (HA 1988) was inserted into HA 1988 by section 35 of the Deregulation Act 2015. It applies to tenancies of dwelling houses only in England. The effect of the subsection is to remove from the provisions of HA 1988, s 21(4)(a), the requirement that a notice under that subsection must expire on the last day of a period in respect of a periodic tenancy. At least two months’ notice must be given, save that, due to the provisions of HA 1988, s 21(4)(b), the date specified in the notice must not be earlier than the earliest
Q&As
Section 216 of the Insolvency Act 1986 Section 216 of the Insolvency Act 1986 (IA 1986) only applies in respect of companies which go into ‘insolvent liquidation’, as defined in IA 1986, s 216(7). A pre-pack administration often uses liquidation as an exit strategy, but it could also use, for example, a CVA. If liquidation of OldCo is used as a means of exit from the pre-pack, then there is a risk that IA 1986, s 216 would apply and the prudent approach would be to take advantage of one of the exceptions set out in the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. For further information,
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The Corporate Insolvency and Governance Act 2020 (CIGA 2020) inserted section 233B into the Insolvency Act 1986 (IA 1986) as part of a package of measures intended, among other things, to mitigate the economic impact of the coronavirus (COVID-19) pandemic. The first point to note is that IA 1986, s 233B only applies where a company becomes subject to a relevant insolvency procedure (as defined in IA 1986, s 233B(2)). It therefore follows that there would be no impact upon a parent company guarantee if that guarantee is triggered by, for example, the customer being unable to pay its debts in circumstances where the customer has not (yet) entered any of the insolvency procedures specifically referred to in IA 1986, s 233B(2). This will always be a fact-sensitive
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The provisions setting out the current administration regime are contained in Schedule B1 to the Insolvency Act 1986 (IA 1986), which is given effect by IA 1986, s 8. Given that IA 1986, s 248 is stated to apply in relation to the ‘First Group of Parts of the Insolvency Act 1986’ (ie IA 1986, ss 1–251), IA 1986, s 8 falls within the First Group of Parts, and as IA 1986, Sch B1 does not contain its own freestanding definition for ‘secured creditor’, it follows that the definition in IA 1986, s 248 will apply
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For a contract to be subject to section 26(1) or (2) of the Unfair Contract Terms Act 1977 (UCTA 1977) (ie an international supply contract) it must meet two requirements: ‘(3) Subject to subsection (4), that description of contract is one whose characteristics are the following— (a) either it is a contract of sale of goods or it is one under or in pursuance of which the possession or ownership of goods passes; and (b) it is made by parties whose places of business (or, if they have none, habitual residences) are in the territories of different States (the Channel Islands and the Isle of Man being treated for this purpose as different States from the United Kingdom). (4) A contract falls within subsection (3) above only if either— (a) the goods in question are, at the time of the conclusion of the contract, in the course of carriage, or will be carried, from the territory of one State to the territory of another; or (b)
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BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime [Archived]. We are not aware of any authority that states section 27 of the Hire Purchase Act 1964 (HPA 1964) applies where a sale is made by the spouse of a debtor. HPA 1964, s 27 (which is contained in Part III of the Act) concerns where a motor vehicle has been bailed under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement,
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The Landlord and Tenant Act 1985 (LTA 1985) was originally a consolidating statute bringing together a number of provisions relating to houses and flats. It has been modified and added to subsequently. Accordingly, some sections only apply to certain specified types of tenancies. For example, the implied repairing obligation under LTA 1985, s 11 only applies to the leases specified under LTA 1985, ss 13 and 14 (ie subject to some exceptions and provisions), LTA 1985, s 11 applies to a lease of a dwelling house granted on or after 24 October 1961 for a term of less than seven years, and accordingly will apply to an assured shorthold tenancy (AST). See Practice Note: Granting assured and assured shorthold tenancies—pre-Renters' Rights Act 2025 position, under the heading ‘Granting assured and assured shorthold tenancies—pre-Renters' Rights Act 2025 position’ and Commentary: Access to repair: Claims to the Possession of Land [C3.21]. Therefore, in considering whether or not a provision under LTA 1985 applies to an AST, the
Q&As
Section 3(1) of the Landlord and Tenant Act 1985 (LTA 1985) provides that if the interest of the landlord under a tenancy of a dwelling is assigned, the new landlord must give notice in writing to the tenant of the assignment, and of his name and address, not later than the next day on which rent is payable or after two months if later. Under LTA 1985, s 3(3), a failure to give such notice amounts to a criminal offence (leading to a fine not exceeding level 4 on the standard scale, which is £2,500). Under LTA 1985, s 3(3A) the assigning landlord remains liable in respect of the landlord covenants for the period until notice of the assignment is given by either the old or the new landlord, with both being jointly and severally