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Q&As
Liability in tort may arise in a number of different ways in connection with construction operations, for example liability for damage to adjoining/neighbouring land and buildings. For liability in negligence to be established, four elements must exist: • duty of care • breach of that duty of care • damage (which is caused by the breach) • foreseeability of that damage For more information see Practice Notes: Key elements to establish a claim in negligence, Negligence in construction and, more generally, subtopic: Tort for construction lawyers. For practical purposes, the test of whether a duty arises is (in effect) whether the harm in question was reasonably foreseeable (Murphy v Brentwood) in accordance with the principles articulated in the speech of Lord Atkin in Donoghue v Stevenson. Where the loss arises out of physical damage to property, and this
PRACTICE NOTES
NOTE: the Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026, SI 2026/455 come into force on 6 April 2027 and do not apply to any package travel contract or linked travel arrangement which were entered into before that date. The regulations add a further category to the definition of 'package' where travel services are provided to a traveller under separate contracts with individual service providers, if a single trader has facilitated, on the occasion of a single visit to, or contact with, the trader's point of sale, the separate selection of and separate payment for each of the travel services by the traveller. Regulation 2 revokes references to 'linked travel arrangements' from the 2018 Regulations. Background to the Package Travel Regulations Packages sold from 1 July 2018 are governed by the Package Travel and Linked Travel Arrangements Regulations 2018 (2018 Package Travel Regs), SI 2018/634. This legislation implemented the Directive (EU) 2015/2302 (Package Travel and Linked Travel Arrangements Directive). The 2018 Package Travel Regs continues in force after the Brexit transition or implementation
PRACTICE NOTES
What is the final account? The expression 'final account' refers to the consolidated financial summary which is presented by the contractor to the employer after all work has been completed. This summary will demonstrate the total sum the contractor considers due to it for the works that it has actually carried out, as distinct from the works that were set out in the contract when it was originally executed. Prior to the final account stage, most building contracts will provide for interim payments to be made to the contractor as the works progress—see Practice Note: Interim payments in construction contracts. In its final account, the contractor includes all of its valid contractual claims for additional payment. Under some forms of contract, the contractor’s obligation is only to provide the documents which are necessary for the employer to calculate the final account. The final account wraps up all that has gone on, in respect of payment to the contractor, over the term of the contract. While it may be possible for the parties to agree
NEWS
The Cabinet Office has updated its Model Services Contract, Mid-Tier Contract and Short Form Contract collections to include new guidance for buyers under the Procurement Act 2023.
PRACTICE NOTES
A large proportion of over-the-counter (OTC) transactions in financial derivatives are entered into between counterparties in different legal jurisdictions. Derivatives practitioners are therefore required to understand the risks involved in transacting with foreign counterparties. Enforceability of the contract The key consideration is whether the local law of a foreign counterparty to a derivative contract will uphold the terms of an agreement in full. In particular, in the context of financial derivatives, it is important to know that standard contract provisions seen in derivatives markets such as netting, set off or the use of a master agreement to govern multiple transactions will be enforceable in foreign courts. As well as looking at the issue in the context of taking proceedings in a dispute between the parties, it is also important to consider whether the provisions of the agreement could be challenged by a local insolvency practitioner in the event that a counterparty was in financial difficulty. Ultra vires A further important consideration is whether, under local law, a foreign counterparty is acting within its powers in
PRACTICE NOTES
This Practice Note deals with the relationships arising between principals, agents and third parties with whom the agent deals on the principal’s behalf. It considers the principal’s liability for its agent, agent’s authority including remedies for breach of authority, fraud and misrepresentation, and the notions of disclosed and undisclosed principal. Principal’s liability for acts of agent A principal is normally liable for all acts of an agent within the agent’s authority, whether responsibility arises in contract or in tort. Authority means the agent’s actual, apparent (ostensible) or usual (customary) authority. For more information, see Practice Notes: Scope and authority of the agent and Forming enforceable contracts—agent's authority to contract. An agent’s authority is conferred by its principal and it is important to note at the outset that the ability to bind a principal in contract is not necessarily determinative of an agency relationship. Indeed, in many instances, an agent will not have the right to bind its principal and this is only one of many restrictions that a principal may apply to an agent’s authority.
PRECEDENTS
The Baltic and International Maritime Council (BIMCO) model arbitration clauses are as follows. (a) This Contract shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced. The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so
Q&As
We are not aware of any general duty in tort which requires an employer to properly maintain a building once completed. However, such a failure may be relevant in other ways, for example: • under the Occupiers' Liability Act 1957, an occupier of property owes a duty of care to visitors in respect of dangers due to the state of the premises (see Practice Note: Occupiers’ liability) • if the employer lets out the building (or part of the building),
NEWS
Information Law analysis: This case concerned a complex tax structure devised by the claimant which resulted in associated claims for breach of confidence, procuring a breach of contract and unlawful means conspiracy. All except the second defendant were held liable for breach of confidence and unlawful means conspiracy. The claim for procuring a breach of contract was time-barred. The judgment provides a useful overview of the law on breach of confidence, the nuances of confidentiality when public and private information is combined and how other causes of action might arise on similar facts. On the procedural front, the judge considered (and sanctioned) serious breaches of CPR PD 57AC’s requirements for trial witness statements. Written by Edward Rees, associate at Trowers & Hamlins LLP.
PRACTICE NOTES
This resource kit contains a list of the key practical guidance available across Lexis+® UK that deals with issues that arise when procuring artificial intelligence (AI) technologies and negotiating AI contracts. It is updated as new content is added. For broader content relating to AI technologies and the legal issues arising from its use in different contexts and sectors, see Practice Note: Artificial intelligence (AI) resource kit. AI procurement and contract resources Guides, checklists and overviews Practical guidance document More information Practical guidance content type Negotiation guide—AI contracts This negotiation guide sets out practical guidance on some of the key issues that may arise when negotiating contracts to procure AI technologies. It is primarily designed to support customers procuring AI solutions but it considers some of the positions that suppliers may take. It summarises the aims of the parties, considers possible negotiating positions and highlights common pitfalls that can be encountered when negotiating AI contracts. Practice Note The AI project lifecycle—a quick guide Realising value from AI while managing the risks involves
PRECEDENTS
[To be typed on employer’s headed notepaper] [Enter name and address of employee] [Enter date] by hand Dear [enter name] Termination of employment Further to the meeting held on [enter date][, at which you were accompanied by [insert name],] [ and our conversation earlier today,] I write to [notify you OR confirm] that [enter name of Employer] has decided to exercise its right under clause [enter clause number of provision dealing with summary termination] of your [service agreement OR contract of employment] dated [enter date] (referred to in this letter as the [‘Service Agreement’ OR ‘Contract’]) to terminate your employment with immediate effect, without notice or payment in lieu of notice, by giving you this written notification.[ This letter also refers to various other terms as defined in the [Service Agreement OR Contract].] The relevant term of the [Service Agreement OR Contract] is clause [enter clause number of provision dealing with summary termination], which provides: [Set out the wording of the relevant provision (the examples in italics below are taken from our Precedent: Executive service agreement)] ‘Notwithstanding the provisions
Q&As
This Q&A has assumed that • no deposit has been paid by the customer • both the supplier and the customer are businesses • there is an equipment lease agreement, which provides that if the customer breaches the agreement, the supplier is entitled to take back possession of the equipment • the equipment lease agreement is not subject to the Consumer Credit Act 1974 (CCA 1974) We do not have a Practice Note dealing with the specific question, however, in carrying out your research, you may wish to consider: Terms of the contract It will be necessary to consider the terms of the equipment lease agreement between the parties to ascertain any specific contractual remedies which it provides either for a general breach or the specific breach of not returning the equipment. Consider in particular any clauses dealing with breach,