This Practice Note examines the nature of performance bonds, why they are required and where they fit into the suite of documentation commonly required for any construction project. The Practice Note also addresses practical issues relevant to the negotiation and drafting of bonds. For guidance on making a call under a bond, see Checklists: Calling on a conditional bond—checklist and Calling on an on demand bond—checklist. The basic structure of a performance bond arrangement A performance bond is a contract whereby: • in relation to a building contract entered into by a building contractor and its appointing employer, ie the beneficiary • a third party ('the surety’) accepts liability for the performance of the contractor under the building contract (to the extent of the obligations described in the performance bond) If the surety is required to make a payment to the employer under the performance bond, the surety is likely to have common law rights to reimbursement from the contractor, but this is usually confirmed by way of a written indemnity agreement, entered into by the contractor in favour

Sanctions must be considered throughout the life of a transaction and any resulting dispute. The 50 questions in this Checklist identify practical issues to consider from initial risk assessment and contract drafting through to the commencement and conduct of arbitral proceedings, recognition, enforcement and ultimate recovery. Sanctions issues are rarely neatly labelled as such. A designation or new sanctions measure arising midway through a contract can raise a series of practical questions: Can the contract still be performed? Can payments be made? Can counsel act? Can the institution and tribunal be paid? Can documents be transferred and witnesses heard? And, ultimately, can an award actually be enforced and the proceeds recovered? The existence of sanctions does not, however, necessarily prevent an arbitration from proceeding. Depending on the applicable sanctions regime and the circumstances, the issue may instead be whether particular acts, services or payments are permitted or require an exemption, licence or other authorisation. Sanctions may affect contractual performance, payment, participation in the arbitration, the

This Q&A considers the service of a claim form in the jurisdiction on a defendant who has not provided an address for service. Is the dispute one under contract? If the dispute is in relation to a matter under a contract which provides for a contractually agreed place for service that address should be used for service (CPR 6.11). See Practice Note: Service of the claim form by a contractually agreed method (CPR 6.11). Service on a prisoner It would appear from the question that there is a possibility that the defendant is still in prison. When seeking to serve a claim form on a prisoner, it is important to know which prison the defendant is being held at. If this information is not known, it is unlikely the prison service will provide

Regarding limitation periods generally, see Practice Notes: Limitation—the principal limitation periods and Limitation Act 1980—general application. From these you will note that the limitation period for claims in contract is six years (section 5 of the Limitation Act 1980 (LA 1980)) and for tort is six years (LA 1980, s 2). Limitation for equitable claims With regard to claims in equity, LA 1980, s 36 provides that certain limitation periods (including the six-year period for tort and contract claims) shall not apply to any claim for ‘equitable relief’, unless they can be applied by analogy with the way that a court would have applied any corresponding time limit before 1 July 1940. Halsbury's provides at para 262 that: ‘when claims are made in equity which are not, as regards equitable proceedings, the subject of any express statutory bar, but the equitable proceedings correspond to a remedy at law in

We have assumed for the purposes of this Q&A that there is an arrangement which establishes a contractual relationship between the original supplier of the equipment and the finance company lessor; such as a tri-partite agreement between the original supplier, lessor and lessee or an agreement between the finance company lessor and the original supplier for the sale of the equipment prior to the lessor leasing that equipment on to the lessee. We further assume there are no specific industry or sector regulations applying to such arrangement between lessor and original supplier or between original supplier and lessee which might impact the analysis. This Q&A focusses on the principles of contractual interpretation and the position generally with equipment leasing and hiring contracts. Contract interpretation Where a contract does not expressly state an action that one party wishes to benefit from, it will

In answering this Q&A, we have assumed that the customer is a consumer and the seller is a trader within the meaning of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 (CCR 2013). It is also assumed that the customer has validly cancelled the contract under the provisions of the CCR 2013. The CCR 2013 give customers the right to cancel sales, supply and digital content contracts. For sales contracts, that right of cancellation does not end until 14 days after the customer has received the goods or part of the goods purchased (see CCR 2013, SI 2013/3134,

In an asset purchase transaction, the buyer acquires only those assets and assumes only those liabilities it wishes to acquire (as set out in the asset purchase agreement). Post-completion, the buyer may need to deal with specific environmental, health and safety (EHS) issues, revealed through due diligence. For example, the buyer may need to transfer or apply for a permit, join a packaging waste compliance scheme or improve health & safety documentation post completion. Common post completion EHS issues in asset purchase transactions include: • transferring environmental permits • checking whether the purchase has triggered any new obligations under environmental regimes, such as producer responsibility, energy efficiency and carbon schemes • addressing issues raised in any environmental audits and reports and any contract conditions • advising on environmental insurance and other risk mitigation strategies • obtaining reliance agreements or collateral warranties for reliance on environmental reports Transfer of environmental permits In an asset sale, the name of the operator/permit holder

This Practice Note provides an introduction to the reinsurance market—what it is, how it works and some key concepts that underpin it. What is reinsurance? Reinsurance is insurance for insurers. It is a contract of insurance purchased by an insurer—typically through a specialist reinsurance broker—to cover that insurer's liabilities. Note that, in practice, a reinsurance contract may sometimes be arranged before the insurance contract to which it relates. Reinsurance may cover very varied types of risk—such as life, property, third party liabilities, and cyber risk—in much the same way as insurance. Purpose of reinsurance The reinsurance industry is a key global industry and the backbone of the insurance industry. Reinsurance serves a number of key purposes including: • allowing insurance companies to spread the financial risk they take on when they underwrite insurance policies, to reduce volatility and smooth insurers' loss experience, protecting against major disasters and incidents (such as hurricanes, wildfires and earthquakes) • reducing the regulatory capital that insurers are required to hold • allowing an insurer to enter into a new

Stop Press: On 24 February 2025, the main provisions of the Public Procurement Act 2023 (PA 2023) come into force. We are reviewing and updating our content accordingly. Note, however, that procurements begun on or after 24 February must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. For information, see Practice Note: Key Implications of the Procurement Act 2023 for Construction Lawyers. Brexit impact—public procurement The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU. For general updates on the process and preparations for Brexit, see Practice Note: Brexit timeline. For further reading on the impact of Brexit on public procurement, see Practice Note: Brexit—the implications for public procurement [Archived]. Introduction The Public Contract Regulations 2015 (PCR 2015), SI 2015/102 implement the Public

The English courts’ approach to exclusion and limitation of liability clauses is considered in detail in Practice Note: Exclusion and limitation of liability. Damages in tort Generally speaking, damages in tort are divided into the categories of ‘general’ damages and ‘special’ damages. Special damages compensate the claimant for quantifiable monetary losses suffered as a result of the defendant’s act or omission and, as a recognised term, is specific to personal injury claims. In a claim for personal injury, for example, general damages arising out of negligence will include compensation for physical injury but a claim for loss of earnings as a result of not being able to work as a result of the incident will be special damages, (see: Past expenses and losses—overview and Practice Note: Common recoverable losses in personal injury cases). Damages in contract Different rules apply when considering damages in contract. The term ‘special

This Checklist on debt claims identifies the key considerations when issuing a claim for a simple contractual debt. It is important that you consider the nature of the claim itself, the parties to the contract, the debtor’s assets, the value of the debt, what the client wants to achieve from litigation, limitation periods and any potential jurisdictional issues. Issue Considerations Is the proposed claim actually a claim in debt? Some claims that appear to be debt claims are actually claims in damages. It is important to understand the distinction because there are significant practical differences between claims in debt and claims in damages, so you should ensure that you are seeking the appropriate remedy. Who are the parties to the agreement? This sounds like an obvious question, but it is an important one to ask because it covers a number of different points:—if proceedings are to be issued, you need to be sure that the correct entity is being sued—analyse the contract to determine precisely who owes the money under the terms of

CASE HUB See further, timeline. Case facts Outline Commission Digital Markets Act investigation into Apple’s: (i) rules on steering for the App Store, (ii) compliance with user choice obligations, and (iii) contract terms. Latest development On 23 April 2025, the Commission issued its infringement decision and imposed fines totalling €500m on Apple for breaching its anti-steering obligation under the DMA.On the same day, the Commission: (i) close its investigation into Apple's user choice obligations under the DMA, and (ii) informed Apple of its preliminary view that Apple's contract terms concerning alternative app distribution breach the DMA. Parties • Apple Background On 5 September 2023, the Commission designated (amongst other undertakings) Apple as a “gatekeeper”, meaning that it must comply with all obligations under the DMA.On 25 March 2024, the Commission opened two non-compliance investigations into Apple’s: (i) rules on steering for the App Store, and (ii) compliance with user choice obligations.On 24 June 2024, the Commission issued its preliminary view that Apple’s steering rules for the App Store were in breach of the DMA because they prevent app developers