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Q&As
We have assumed that service is pursuant to a notice clause in a commercial contract. Contractual definition Where a contract defines what a ‘by hand’ method of service means, this definition should be looked at for the meaning of delivery ‘by hand’. Absence of a contractual definition Where there is no contractual definition of a ‘by hand’ method of service, and in the absence of any indication to the contrary, a courier is generally regarded as satisfying a by hand service obligation. If this interpretation is challenged, the court will objectively construe the meaning of the term, having regard to the words
NEWS
Construction analysis: The Technology and Construction Court (TCC) considered a Part 8 application brought by a losing party in an adjudication where declarations were sought as to the extent of a Contractor’s design responsibility under a JCT Design & Build Contract. The TCC held that although there was a ‘warranty’ contained within the Employer’s Requirements stating that the design would be developed up to RIBA Stage 4/4(i), this did not negate the contractor’s overall responsibility for design contained in the contract and thus did not entitle the contractor to a variation, time or additional money in completing the design.
NEWS
The Ministry of Defence (MOD) has published the government’s response to ‘Defence and Security Industrial Strategy: Consultation on amendments to the Single Source Contract Regulations’ (SSCRs). The government has welcomed most of the proposals in the responses to the consultation. The MOD has said that it plans to introduce amendments, through secondary legislation, to amend the Single Source Contract Regulations, SI 2014/3337. These proposed amendments will follow an affirmative procedure. The MOD has also said that there will be further consultations on the necessary changes to Statutory Guidance and any further legislation.
NEWS
This week's edition of Construction weekly highlights includes a case in which the Technology and Construction Court (TCC) considered whether an employer had issued a contractual notice within the period specified in the contract (My Contracts v 74 Hamilton Terrace), updated guidance and commentary from the Construction Leadership Council (CLC) and Building Safety Regulator (BSR) on the building control approval process for higher-risk building (HRB) works, publication of the Civil Justice Council (CJC)’s final phase two report on its review of the Pre-Action Protocols, the launch of new websites and a Case Management Portal by the UK Supreme Court (UKSC) and Judicial Committee of the Privy Council (JCPC), and a call by the Department for Business and Trade (DBT) for participants to test a prototype of its updated ‘Payment Practices and Performance reporting’ service.
PRACTICE NOTES
STOP PRESS: This Practice Note is being updated for the coming into force of section 48 of the Border Security, Asylum and Immigration Act 2025, and related guidance and Codes of Practice. This measure will extend the right to work regime to the provision of work and services beyond the standard employment relationship, including to worker contracts, individual sub-contractors and online matching services. Liability will also be extended in relation to relationships along a contractual chain and where substitution is allowed. There are separate prescribed requirements which will create a statutory excuse for some of these relationships. For more details, see Practice Notes: Illegal working: who must be checked and Illegal working—civil and criminal sanctions. An employer who is found to have employed a person unlawfully in the UK may be liable to civil penalties and/or criminal sanctions. For further information, see Practice Notes: Illegal working: dealing with a civil penalty and Illegal working: dealing with a criminal allegation. In addition to civil penalties
PRACTICE NOTES
This Practice Note is archived and is no longer maintained. This Practice Note is aimed primarily at established financial institutions and early stage fintechs wanting to partner in respect of fintech solutions. It covers: • What is fintech? • Why do financial institutions need to work with fintechs? • How do financial institutions normally contract with third parties? • Legal issues when contracting with fintechs • How to engage with fintechs The term ‘financial institution’ in this note is used to refer to an organisation that is in the business of dealing with regulated financial products and services. Typically, they will include banks and insurers but may also include asset managers and others involved in the financial services sector. This note is intended only to provide a general overview of the key issues and should not be used as an exhaustive or all-encompassing resource on the legal issues. For example, many of the legal considerations which arise during any supplier engagement will also arise when contracting with fintechs. It should be noted that the contracting process
NEWS
This week's edition of Commercial weekly highlights includes: analysis of the decision in Grain Communications v Shepherd Groundworks which considered whether an employer’s decision to postpone works was a valid exercise of its right to instruct variations or a breach of contract, announcement of the publication of the decision in Sea Consortium PTE Ltd (trading as X-Press Feeders) v Bengal Tiger Line PTE Ltd which considered whether slot charterers fell within the definition of ‘charterer’ in Article 1(2) of the Convention on Limitation of Liability for Maritime Claims 1976, and news that the Advertising Standards Authority has published its latest rulings.
PRACTICE NOTES
This Practice Note is the second of a series of three Practice Notes on health care procurement introduced by the Provider Selection Regime (PSR) as implemented by the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR Regs 2023), SI 2023/1348, which came into force on 1 January 2024. This Practice Note explains the procurement processes available to relevant authorities involved in planning, purchasing, and delivering of health and care services, namely the: • direct award process—which is subdivided into three forms of direct award • most suitable provider process • competitive process as well as covering the mandatory procedural requirements for all procurements. It also covers the additional considerations for relevant authorities when making contract awards using any process other than direct award processes A and B, namely the: • Basic selection criteria • Key criteria • Exclusions • Conflicts of interest The statutory guidance on PSR Regs 2023 requires relevant authorities to undertake reasonable and proportionate due diligence on providers. Relevant authorities are expected to consider whether the providers they want
PRACTICE NOTES
This Practice Note considers the issues that can arise in determining when a binding settlement of a dispute has been concluded, if it was concluded at all. For guidance on enforcing settlement agreements, see Practice Notes: Enforcing settlement agreements concluded after proceedings have commenced and Enforcing a settlement agreement concluded pre-action. When a negotiation of disputed matters is followed by the acceptance of an offer supported by consideration with the intention of creating a legal relationship, a settlement agreement is made. In order to be contractually binding, in the settlement arrangement there must be identifiable: • acceptance of an offer—this means the final and unqualified assent to an offer • the assent corresponding with the terms of the offer • it is essential that the acceptance is communicated to the offeror to be accepted Be aware of the possibility of accepting an offer even though the intention is to continue negotiations. For guidance on avoiding this, see Practice Notes: • Settling disputes—who, confidentiality and subject to contract • Settling disputes—how to document a settlement For
PRACTICE NOTES
What is an LME? The term liability management exercise (LME) can have various meanings. For the purposes of this Practice Note: (i) LMEs include liability management transactions (LMTs) (ii) LMEs refers to a borrower using flexibility in the finance documents (sometimes unintentionally granted by the lenders) to adjust its capital structure, thereby accessing additional and/or cheaper debt or reducing leverage and (iii) LMEs do not involve any formal or court driven restructuring techniques (eg Part 26A restructuring plans (RPs) or Part 26 Schemes of Arrangement (schemes)) and so are a form of ‘out-of-court restructuring’ process. Typically, the debtor and a small group of existing (or new) lenders/bondholders/noteholders will work together to elevate or improve the position of those participating creditors, often to the detriment or dilution of non-participanting/minority creditors (ie a non pro rata deal). Essentially LMEs involve a tension between freedom of contract (the argument run by the debtor company and participating creditors) and the equitable treatment of the non-participating creditors. Various structures are typically used in LMEs including: drop downs, up-tiers, double
GLOSSARY
Negotiations which do or may result in a contract
CHECKLISTS
This Checklist considers how to identify international contracts for the supply of goods and how international contracts for the supply of goods can create more considerations than the domestic supply of goods. The Checklist then sets out a series of considerations when drafting and entering into international contracts for the supply of goods, including issues such as credit rating, carriage of goods (or shipping), international trade terms (including Incoterms®), payment, trade finance, currency, exchange controls, import and export restrictions, intellectual property, force majeure, insurance, language, product liability, notices, governing law, jurisdiction, and trade with the EU. The Checklist is drafted practically from the perspective of an in-house lawyer. Identifying international contracts Does your business know how to identify an international contract, or even what an international contract is? Knowing how to spot an international contract is important for two reasons: • this will shape your involvement as the in-house lawyer—is this a contract you can advise on or do you need to seek external advice? If the latter, this may have an impact on the time scales the business is