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Q&As
Implied terms in business to business contract: There are various implied terms that arise from the Sale of Goods Act 1979 (SGA 1979) in a business to business contract: • that the seller or transferor of goods has the right title (SGA 1979, s 12) • that the goods will correspond with their description (SGA 1979, s 13) • that the goods will be of satisfactory quality and fit for purpose (SGA 1979, s 14) • that where the goods were transferred by reference to a sample that they will correspond with the sample (SGA 1979, s 15) Breach of an implied condition gives a customer the right to reject goods that do not meet the statutory standards.
Q&As
Interim rent is an amount which is reasonable for the tenant to pay while its tenancy is being continued, pursuant to section 24 of the Landlord and Tenant Act 1954 (LTA 1954). Either a landlord or tenant may make an interim rent application once an LTA 1954, s 25 notice or LTA 1954, s 26 request has been served, and can be made as part of the lease renewal proceedings or as a standalone application. Pursuant to LTA 1954, s 24B, interim rent is payable from the ‘appropriate
PRACTICE NOTES
In a construction project, the contractor’s contractual relationship under the building contract is only with the employer. However, in most construction projects, there will be other third parties who will have an interest in the terms of the building contract, the way that the works are carried out and/or in the end-product. They do not ordinarily have any contractual nexus with the contractor under the building contract and therefore, if they suffer losses due to an act or omission of the contractor, cannot ordinarily claim for breach of the building contract unless they have enforceable third party rights. Therefore, both the third parties and the employer will want to ensure that their interests in the works are protected so that, in the event that they suffer losses, they have a route of redress. This Practice Note looks at third parties who are typically interested in construction projects and how their interests are commonly protected. It looks at how an employer can seek to pass down obligations under the agreements that it has entered into with third
CHECKLISTS
This Checklist of resources brings together key content for commercial practitioners advising a business trading in difficult times. It covers considerations when drafting contracts, building resilience into supply chains, price and payment issues, performance problems and dealing with disputes. A wide range of external factors may cause problems for businesses including, for example: • rising prices and economic instability, such as increased energy supply prices and their knock-on effect, inflation and currency fluctuations, and the impact of new/increased international tariffs • supply chain problems, for example, those caused by the war in Ukraine, import/export requirements and border delays since the departure of the UK from the EU, shortages of goods and labour and strikes • climate change is also affecting the supply chain in many ways, from rising temperatures and weather extremes that impact agriculture and transportation, to natural disasters that can disrupt entire regions • the rapid growth of e-commerce and the explosion of online shopping is putting a huge strain on supply chains, as retailers and manufacturers struggle to keep up with the surging demand
NEWS
The Scottish Building Contract Committee (SBCC) has published the SBCC 2024 Design and Build Suite for use in Scotland. Based on the JCT 2024 editions, the suite has been adapted to comply with Scottish law and practice and includes the Design and Build Contract, guide, Sub-Contract Agreement, Sub-Contract Conditions and Sub-Contract Guide. SBCC also published a tracked change version of the main contract and a contract administration pack and noted that corresponding SBCC 2016 editions will be withdrawn from sale 12 months after each 2024 edition is published.
Q&As
A person who is entitled to a share (or all) of an estate can give away their entitlement, or a part of it. If that is done by means of a deed of variation within two years of the death and meets other conditions, it will be treated for inheritance tax (IHT) purposes as if the intestacy rules had given an entitlement to the recipient of the gift (the Recipient). While an estate is in the course of administration, a personal representative (PR) will hold the property and its net sales proceeds as
PRECEDENTS
This Settlement Agreement is made on [insert date] (the ‘Settlement Date’) between the following parties (each a ‘party’ and together the ‘parties’): Parties 1 [insert name of party A] a company incorporated in [England and Wales] whose company number is [insert company number] and whose registered office is at [insert registered office] ('[Name of party A]'); and 2 [insert name of party B] a company incorporated in [England and Wales] whose company number is [insert company number] and whose registered office is at [insert registered office] ('[Name of party B]'). Background (A) The parties entered into a construction contract dated [insert date] for the [insert description of works/project, eg ‘design and construction of a property known as Bloggs House'] (the ‘Contract’). (B) [The parties are engaged in a dispute[ regarding [insert details of the dispute, including material facts, potential causes of action and alleged losses—for guidance on issues to consider see the drafting notes] OR , full details of which are set out in the schedule attached] (the ‘Dispute’). OR The parties are engaged in proceedings in respect of various disputes arising out of the Contract in the
PRACTICE NOTES
This Practice Note looks at the Conditions of Contract for Construction 1999 (commonly referred to as the FIDIC Red Book 1999), and the Conditions of Contract for Construction MDB Harmonised Edition 2010 (the FIDIC Pink Book 2010), and compares key differences between the two forms. A new edition of the Red Book was published in December 2017. For more information, see Practice Note: FIDIC contracts 2017—what’s changed? [Archived]. The FIDIC Red Book 1999 The Red Book is one of the most commonly used of the FIDIC contracts. It is suitable for building or engineering works where the Contractor is building to the Employer’s design. For a more detailed look at the Red Book 1999, see Practice Note: FIDIC—introduction to the Red Book 1999. The FIDIC Pink Book 2010 The Pink Book is used on construction projects funded by multilateral development banks (MDBs). MDBs are supranational institutions, such as the World Bank and the European Bank for Reconstruction and Development (EBRD), that provide financial support and professional advice for economic and social
PRACTICE NOTES
This Practice Note looks at the process of transferring a commercial property. It assumes that the property being transferred is a registered freehold or leasehold, is being sold either with vacant possession or subject to lease(s) and is being acquired either as an investment or for the purchaser’s own occupation. It contains the following key sections which cover the different stages of a typical sale and purchase transaction. Each section contains links to other Lexis+®UK materials which provide more comprehensive information on the topics covered: • Preliminary matters • Pre-exchange—the due diligence process • The contract and exchange • Between exchange and completion • Completing the transaction • Post completion The guidance in this Practice Note is not exhaustive and will not cover every eventuality for every transaction. See also: • Structure of real estate finance—overview • Real estate in corporate transactions—overview • Practice Note: Buying from an insolvency practitioner—the sales process and insolvency issues in property • Practice Notes: Property development joint ventures—acting for a developer and Property development joint ventures—acting for a landowner • Practice Note: Contract races
Q&As
An employer cannot initiate a breach of contract claim in the employment tribunal; the employer may only bring a breach of contract claim in the employment tribunal by way of counterclaim, where the employee has already brought a breach of contract claim as part of the tribunal proceedings. For further information, see Practice Note: Contract claims in the employment tribunal—Breach of contract claims by employers. Breach of contract proceedings
Q&As
One of the methods of termination of a business tenancy with security of tenure under the Landlord and Tenant Act 1954 (LTA 1954), is service of a notice under LTA 1954, s 25. The notice must be served so as to expire no earlier than the contractual termination date of the lease and must give between six and 12 months notice. Where the landlord does not oppose the grant of a new lease, the landlord must set out the landlord's