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PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note considers the provisions in Regulation 44/2001, Brussels I, also known as the Judgments Regulation, dealing with consumer disputes. The provisions seek to provide protection for consumers as the weaker parties in a contract. The Practice Note sets out the definition of a consumer and looks at the different classes of consumer contracts. The different positions for determining jurisdiction depending on whether the consumer is the claimant or the defendant are explained identifies the different types of consumers as well as the different types of contracts they may enter into. Note: since 10 January 2015, Regulation 44/2001, Brussels I has been repealed in its entirety and replaced by Regulation 1215/2012, Brussels I (recast). Transitional arrangements apply. For information on those arrangements and whether Regulation 44/2001, Brussels I still applies to the matter you are dealing with, see Practice Note: E&W Brussels I (recast)—application and exclusions. Recital [13] of Regulation 44/2001, Brussels I provides that in 'relation to … consumer contracts
NEWS
This week's edition of Commercial weekly highlights includes: analysis of the Court of Appeal decision in Kulkarni v Gwent Holdings Ltd where the court provided guidance on the interpretation of contractual clauses, including remediability of repudiatory breaches in shareholders' agreements, analysis of the Court of Appeal decision in Hitex v Uniserve Ltd which considered termination of a supply contract, repudiatory breach and ongoing performance, and news that the Competition and Markets Authority has announced plans to update its 2015 guidance on unfair terms and notices under Part 2 of the Consumer Rights Act 2015.
PRACTICE NOTES
Abandon Describes a situation where the contractor stops carrying out the works for a prolonged and consecutive period of days (eg 20 business days) or for a longer non-consecutive period of days (eg 60 business days) throughout the life of the project or within a specified period (eg 12 months) and does so wilfully and without a reason. Abandonment is usually classed as a contractor default which would allow the authority to terminate the Project Agreement and/or allow the Project Co to terminate the construction contract. Acceptance Tests Tests undertaken to see if the facility (or other project asset) meets the standards required for the Authority to accept the facility as complete. Access Protocol The protocol which must be adhered to by Project Co in order to gain access to the buildings which form part of the project. For example on a social housing project or a school, certain criteria would need to be met by Project Co before it or its Contractor could access dwellings or the school to undertake repairs or refurbishment. Adjudicator An
PRACTICE NOTES
This Practice Note links to content on the proper execution of deeds and simple contracts by incorporated and unincorporated charities, private trusts and unincorporated associations, including guidance, Precedent clauses and Q&As. Incorporated charities Execution formalities and clauses For guidance on the proper execution of deeds and simple contracts by incorporated charities, see Practice Notes: • Execution formalities—incorporated charities • Executing deeds and documents in property transactions—charities • Forming enforceable contracts—authority—Charities For examples of execution clauses for an incorporated charity entering into: • a simple contract (rather than a deed), see Precedent: Execution clause—charities (incorporated)—contract • a deed (rather than a simple contract), see Precedent: Execution clause—charities (incorporated)—deed Co-operative and community benefit societies and execution clauses For information on co-operative and community benefit societies, including what they are, the legal framework that governs them and guidance around their structure and registration, see Practice Note: Co-operative and community benefit societies. For examples of execution clauses for a co-operative and community benefit society entering into: • a simple contract (rather than a deed), see Precedent: Execution clause—registered society—contract • a
Q&As
This Q&A considers whether the time limit in respect of personal injury claims under the Limitation Act 1980 (LA 1980) applies to loss of earnings relating to the same incident. LA 1980, s 11(1) states: ‘This section applies to any action for damages for negligence, nuisance or breach of duty (whether the duty exists by virtue of a contract or of provision made by or under a statute or independently of any contract or
Q&As
A relevant transfer does not terminate the contract of employment of any person employed by the transferor and assigned to the organised grouping that is subject to the transfer. Instead, the contract of employment has effect after the transfer as if originally made between the employee and the transferee. The transferee acquires: • all rights, powers, duties and liabilities under or in connection with the contracts of employment of transferring employees • liability for all pre-transfer acts and omissions of or in relation
PRECEDENTS
date [date] Parties 1 [name of (first) Seller] [and [name of second Seller] both] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] (Seller) 2 [name of Buyer] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at [address]] (Buyer) 1 Definitions In this Agreement, the following definitions apply: Buyer’s Solicitors • [name] of [address] (reference [details]) or any other solicitors the Buyer notifies to the Seller; Deposit • £[amount in figures] [([amount in words] pounds)]; [Independent Surveyor • an independent chartered surveyor who has at least [10] years’ experience of valuing property of a comparable type and in a comparable location to the Property;] Interest • interest at the rate of [4]% per annum above the base rate from time to time of [name of bank]; Legislation • all legislation in force in the United Kingdom at any time during the currency of this Agreement, including: (a) Acts of Parliament; (b) orders, regulations, consents, licences, notices and bye laws made or granted: i under any Act of Parliament; ii by a local authority or by a court of competent jurisdiction; (c) any approved codes of practice issued by a statutory
PRACTICE NOTES
This Practice Note looks at the special jurisdiction provisions in Article 7 of Regulation (EU) 1215/2012, Brussels I (recast), when dealing with different types of claims and disputes. The special jurisdiction under Article 7 enables a claimant to bring proceedings against a defendant in a jurisdiction in which the defendant is not domiciled. Such jurisdiction is non-exclusive and so, if applicable, does not oust the jurisdiction of any other EU Member State. Matters relating to contract claims (art 7(1)) This area is addressed separately, see Practice Note: Brussels I (recast)—contract claims (Art 7(1)) . Matters relating to tort and delict claims (art 7(2)) This area is addressed separately, see Practice Notes: Brussels I (recast)—tort and delict claims (art 7(2)) and Brussels I (recast)—the harmful event (art 7(2)). Civil claims for damages or restitution based on criminal proceedings (art 7(3)) Article 7(3) of Regulation (EU) 1215/2012, Brussels I (recast) provides, that in claims for damages or restitution based on criminal proceedings, a person domiciled in one EU Member State may be sued in the
PRACTICE NOTES
Introduction This Practice Note is part of our student series, aimed specifically at students undertaking their LLB. It examines the doctrine of consideration: the requirement that each party to a contract gives something of value in return for what they receive. Consideration is a central element of contract formation, along with offer, acceptance, intention to create legal relations and certain terms. The Practice Note begins by explaining what consideration means in its legal sense, and why English law will not support a gratuitous promise. It sets out the classic definition from Currie v Misa (1875) LR 10 Ex 153 and distinguishes executed from executory consideration, addressing a misunderstanding that regularly costs marks in exam questions: the belief that consideration exists only once value has actually changed hands. It then works through the three main principles: that consideration may be executed or executory but not past, that it must move from the promisee, and that it must be sufficient but need not be adequate, each illustrated by the leading authority. It then turns to the three limitations: past
Q&As
It is common to come across the phrases 'with quantities', 'without quantities' and 'approximate quantities' in relation to construction contracts. These terms relate to the way that the works have been priced. For example, the JCT Standard Building Contract is published in With Quantities, Without Quantities and Approximate Quantities versions. Which description is correct (and therefore which form of contract is appropriate if using the JCT Standard Building Contract) will depend on whether or not there is an accurate bill of quantities available at the outset. Where the contract is described as being 'with quantities' it means that the employer provides the contractor with a detailed bill of quantities, ie a list which defines the quantity and quality of the work required
Q&As
Consumer Rights Act 2015 Under section 6 of the Consumer Rights Act 2015 (CRA 2015), a contract for the hire of goods includes: • a contract under which the trader gives or agrees to give the consumer possession of the goods with the right to use them, subject to the terms of the contract, for a period determined in accordance with the contract, but • is not a hire-purchase agreement as defined in CRA 2015, s 7. CRA 2015, s 7 does not apply to the facts of the question as it must be in return for 'periodical payment' For more information on the regulation of consumer credit and hire-purchase agreements, see Practice Notes: • Credit hire—an introduction • Entering into a consumer hire agreement as owner • What is credit and when is a credit agreement regulated? • Regulated activities relating to consumer credit The CRA 2015 does
Q&As
A section 106 agreement is a contract entered into under statutory powers pursuant to section 106 of the Town and Country Planning Act 1990. It must be entered into by deed. It is, nonetheless, a contract between parties and the terms of the contract will govern both the payment and repayment of financial contributions. A developer has no statutory right to repayment of section 106 contributions, so it must be specifically negotiated as a term of the contract. A section 106 agreement will usually include two principal obligations on a local planning authority (LPA) to repay contributions. These are as follows: • in circumstances where the planning permission has been quashed, revoked, modified or varied (except with the developer’s consent), or has expired prior to implementation/commencement • if the contribution has not been