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Q&As
Contracts governed by the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, often envisage a service arrangement that will last over a period of time and, because of that, the contract may contain sophisticated mechanisms by which various categories of change can be effected during the contractual term. This may include extensive clauses in relation to the extension of the contract. Whether the expired contract can be extended depends on the extension clause in question. If, for example, the clause provided that the contract could be extended after its expiration, the contract could be extended in accordance with PCR 2015, SI 2015/102. The relevant provision of PCR 2015, SI 2015/102, reg 72 sets out a comprehensive set of principles that will determine when a contract or framework agreement may be modified without a new procurement and when a new procurement procedure will be required.
PRACTICE NOTES
This Practice Note examines pre-contract disclosure requirements for consumer credit agreements under the disclosure regulations made under section 55 of the Consumer Credit Act 1974 (CCA 1974), together with regulatory requirements set out in Chapter 4 of the Financial Conduct Authority’s (FCA) Consumer Credit sourcebook (CONC 4). For information about post-contract requirements, see Practice Note: Consumer credit agreements—post-contract requirements. What is the relevant consumer credit pre-contract disclosure law? Since 1 April 2014, the FCA has been responsible for the regulation of consumer credit. CCA 1974, and many of the regulations that supplement the CCA 1974 remain in force, however, certain sections have been repealed, amended or supplemented to fall within the Financial Services and Markets Act 2000 (FSMA 2000) and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) regime. This means that the rules governing pre-contract requirements are set out in regulations made under the CCA 1974 as well as CONC 4. The starting point is CCA 1974, s 55 which requires the disclosure of pre-contractual information in accordance with regulations made under the same section.
PRACTICE NOTES
This Practice Note considers jurisdictional service gateways or grounds for service set out in CPR PD 6B, para 3.1(6)–3.1(8) dealing with contract claims. The Practice Note sets out the contract gateways and provides insight into the way in which they have been interpreted by the courts. When considering these gateways, it should be noted that: • they have undergone a number of amendments and care should therefore be taken when referring to any older authorities. For details, see Practice Note: Tracker—changes to Part 6 and practice directions 6A and 6B • the number of gateways has been expanded over time and older authorities may deal with circumstances in which a new gateway would now be more appropriate This Practice Note should be read in conjunction with Practice Note: Cross-border service—jurisdictional gateways (principles). Claims in relation to contracts—general A number of different gateways may apply when seeking permission to serve a claim form outside England and Wales for claims in relation to contracts: • Claims in respect of a contract—gateway 6 below • Claims made
PRACTICE NOTES
Scope of Practice Note This Practice Note provides a set of worked examples for pleading: • particulars of claim • defence • reply based on a hypothetical claim arising out of a contract for the sale and delivery of blinds in a business-to-business scenario. Given the nature of the claim, it is not one to which the Late Payment of Commercial Debts (Interest) Act 1998 applies (on which, see Practice Note: Late Payment of Commercial Debts (Interest) Act 1998). These worked examples are not designed to be used as Precedents. They do not include all possible claims or defences that might be available in the hypothetical scenario and are not intended to be ‘the perfect pleading’. Rather, they are intended to be read in conjunction with the generic statement of case Precedents linked to below and provide practical examples of how a hypothetical scenario might look when pleaded in the sequence of particulars of claim, defence and then reply so as to assist practitioners in understanding how factual and legal information should
PRACTICE NOTES
This Practice Note looks at enquiries before contract (also called pre-contract enquiries, preliminary enquiries or standard enquiries) in residential conveyancing transactions. It assumes that the parties to the transaction have adopted the Law Society Conveyancing Protocol (2019) (the Protocol) and that the buyer’s conveyancer will also be acting for a lender in accordance with the UK Finance Mortgage Lenders’ Handbook (the UKFML Handbook) or the Building Societies Association Mortgage Instructions (the BSA Instructions). See Practice Notes: The Law Society’s Conveyancing Protocol and Lenders' instructions—the UK Finance Mortgage Lenders' Handbook and the Building Societies Association Mortgage Instructions. Why raise enquiries? At common law, the underlying principle is ‘caveat emptor’ or ‘let the buyer beware’ and so a seller is only under a limited obligation to provide a buyer with information about the property. It is largely up to the buyer to make sure that they know what they are buying in terms of the nature of the property and any rights or liabilities which may attach to it. A buyer’s conveyancer
NEWS
Construction analysis: The Technology and Construction Court (TCC) considered the interpretation of a JCT Design and Build Contract 2016 which contained complex bespoke amendments and clarifications relating to the risk allocation for existing structures at a construction site. The TCC found that under the contract the risk of additional cost or delay being incurred as a result of the state of the existing structures, including their being unable to support or facilitate the proposed works, lay with the employer.
Q&As
Termination rights within a business contract When considering termination rights within a business contract, it is important to consider the different reasons for needing to terminate a contract. For example, the difference between termination for breach of contract and termination without cause. It is also important to check how the termination clause sits alongside other remedies and provisions within the business contract. Contractual provision for termination Practice Note: Termination and expiry of contracts sets out the law, guidance and practice relating to terminating an agreement, including the practical and legal consequences of the method chosen to end the agreement, whether the termination has arisen because of a contractual provision to terminate, by way of rescission of the agreement or because of a breach of contract. The above Practice Note states that: 'It is quite common for parties to negotiate terms that stipulate when an agreement may terminate' and includes as an example: 'on notice by one or other party'. There is no general prohibition on a business
PRACTICE NOTES
CASE HUB ARCHIVED–this archived case hub reflects the position at the date of the decision of 2 September 2013; it is no longer maintained. See further, timeline and related cases. Case facts Outline UK merger investigation into the completed acquisition by AEG of the contract to manage Wembley Arena. Latest developments The CC unconditionally cleared the transaction on 2 September 2013, confirming its provisional findings. Parties AEG Facilities UK (AEG) and Wembley Arena. AEG currently operates three other indoor live entertainment venues in London—the O2 Arena, the Hammersmith Apollo and IndigO2. AEG has also recently been awarded a five-year contract to deliver summer concerts in Hyde Park. Wembley Arena is one of the major live entertainment venues in London and, until AEG took over the contract, was managed by Live Nation. Background AEG
Q&As
The written statement of particulars of employment issued to a worker to comply with section 1 of the Employment Rights Act 1996, which usually forms part of a contract of employment, must include details of the worker’s place of work or, where the worker is required or permitted to work at various places, an indication of that, and the address of the employer. For more detailed information, see: • the section of Practice Note: Written statements of employment particulars entitled ‘What the written statement must cover’ • Practice Note: Place of work and mobility clauses It may be a term of an employee’s contract that they are permitted to work remotely, or this may have been agreed on an informal or temporary basis (eg where the employer is trialling remote working). In order to establish that an employee who is
Q&As
This Q&A can be broken down into three questions: • does a contract exist at all between the parties? • if so, what are the terms of the contract?, and • how can the contract be varied or terminated? For the purposes of this Q&A we have assumed that the contract is a business-to-business contract. The position may differ if one of the parties is a consumer. Does a contract exist at all between the parties? For any binding contract to come into force, the following key elements must be present: • offer • acceptance • consideration, and • the intention to create legal relations It is established law that a contract can come into effect in the absence of execution through the conduct of the parties. In Brogden v Metropolitan Rly Co, a contract for the provision of coal to the Metropolitan Railway Company was established even though a draft contract was produced, but never
CHECKLISTS
This Checklist provides a summary of the issues that should be taken into consideration before and after a party decides to terminate a building contract, or other agreement entered into in connection with a construction project. Full guidance and information on terminating contracts can be found in the Termination and suspension in construction contracts subtopic. Considerations when deciding whether to terminate A party who is deciding whether to take steps to terminate a construction contract should consider the following points: • What are the reasons for terminating the contract? • Check the provisions of the building contract carefully. Does the building contract contain express provisions regarding termination, setting out specific events that will entitle the parties to terminate? Most UK building contracts contain express termination rights (see Practice Notes: JCT contracts—termination, NEC contracts—termination, FIDIC contracts 2017—termination by the Employer, FIDIC contracts 2017—termination by the Contractor, FIDIC contracts (pre-2017 editions)—termination by the Employer and FIDIC forms of contract (pre-2017 editions)—termination by the Contractor). • If there are contractual grounds for termination, what are they? Does one of these grounds
Q&As
Place of work An employee is entitled, within two months of commencement of employment, to receive a written statement of particulars of the most important aspects of their contract, including ‘either the place of work or, where the employee is required or permitted to work at various places, an indication of that and of the address of the employer’. The legislation therefore expressly envisages the possibility that an employee may