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Q&As
We have been unable to find any authority on whether the common law fetters a contractual clause entitling a party to assign the burden under a contract without the other party’s consent. See Practice Note: What constitutes a valid assignment of a contract? which sets out the requirements for a valid assignment, whether one taking effect in law or in equity. Generally, (absent interlaced benefit and burden cases) an assignment can transfer only rights under the contract and not duties, provided they are independent of each other (Pan Ocean v Creditcorp
Q&As
We have assumed in this Q&A that the employer under the JCT Standard Building Contract 2011 and 2016 (SBC) is a ‘contractor’ for the purposes of the Construction Industry Scheme (CIS). This should be specified in the Contract Particulars against the reference to the Fourth Recital and clause 4.6 of the SBC 2016 (clause 4.7 in the 2011 edition). However, even if the parties fail to state this, or if the employer’s status changes such that it comes within the definition of a contractor under CIS only after the contract has been signed, the parties will still be subject to the obligations of CIS. For guidance on when an employer is classed as a ‘contractor’, see Practice Note: The construction industry scheme—when does it apply?—Contractors. Obligations under the CIS The obligations imposed by the CIS on contractors (including an employer that falls within this definition under the CIS) are considered in Practice
Q&As
A framework agreement allows a single tender process to be carried out in respect of a number of construction projects or tasks, therefore reducing the time, costs and administration involved in contract procurement, drafting and negotiation. See Framework agreements for construction lawyers—overview. Where a framework agreement has been executed as a deed and the call-off contract as a simple contract, the limitation period for a breach of contract will depend on whether the alleged breach is: • of a term(s) of the framework agreement, or • of a term(s) of the call-off contract In this regard, it is necessary to consider the terms of the framework agreement and call-off contract, as well as the nature
Q&As
It is first important to consider whether there is a valid contract which is capable of being enforced. Under English contract law, a contract is formed when: • a valid offer is accepted • there is valid consideration • the parties intend to create legal relations For more information on the requirements for an enforceable contract, see: Formation and interpretation—overview and the related Practice Notes. In particular, you may find useful, Practice Note: Forming enforceable contracts—acceptance which outlines how a party can accept an offer, which in some cases may include acceptance by conduct. To establish that express terms conditions (T&Cs) have been incorporated
PRECEDENTS
headed notepaper of seller/assignor To: [Insert name and address of contractual counterparty] [Insert date] Dear [insert contact name/title at contractual counterparty], Request for consent to assignment of contract We refer to the agreement dated [insert date] between [insert name of seller/assignor] and [insert name of contractual counterparty] relating to [insert details of contract] (the Contract). We hereby give notice that, as part of the sale of the [insert name of business being sold] business, on [insert
NEWS
Commercial analysis: The Court of Appeal has held that the initial purported termination by the buyer under a supply contract was unlawful so that the seller could have treated the buyer’s conduct as a repudiatory breach of contract, entitling the seller to terminate and claim damages. As the seller did not do so, the contract remained alive for performance and the seller was obliged to comply with its contractual delivery obligations. When it failed to do so, the buyer became entitled lawfully to terminate the supply contract. The seller’s claim for damages for non-acceptance of goods failed as a result. A related claim for commission on the uncollected goods brought by intermediaries also failed. The Court of Appeal did, however, agree with the seller that the buyer had not entered into the supply contract on the basis of a third-party misrepresentation as to the production capabilities of the seller’s factory, but had instead relied on its own due diligence. Therefore, the buyer’s alternative case of rescission for misrepresentation failed. Written by Andrew Meads, partner at Hill Dickinson LLP, and Reema Shour, legal director and Professional Support Lawyer at Hill Dickinson LLP.
Q&As
According to the Utilities Contracts Regulations 2016 (UCR 2016), SI 2016/274, reg 70(1), utilities have 30 calendar days in which to send a contract award notice for publication to the EU Publications Office following the award of a contract or the conclusion of a framework agreement. Notices must contain the information set out in Annex XII to Directive 2014/25/EU (the Utilities Contracts Directive). For practical purposes, utilities comply with this requirement by submitting Form 6, which is the appropriate EU Publications Office form for contract awards by utilities. It should also be noted that a contract award notice should be used to inform the market that a particular tender process has been unsuccessful or abandoned. In the past, the requirement to publish a contract award notice was often more honoured in the breach
Q&As
The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR 2013), SI 2013/3134 came into force on 13 June 2014. They regulate most contracts made between a ‘trader’ and a ‘consumer’. The provisions of SI 2013/3134 apply to many contracts made between solicitors (as traders) and their clients (as consumers). Whether they apply will depend on the nature of the client and the circumstances in which the contract was made. The net effect of SI 2013/3134 is to require that a solicitor must provide certain pieces of information to clients if the contract falls within their scope. The provisions of SI 2013/3134 apply if the contract is made in one of three situations: • distance selling • on-premises • off-premises This response deals only with off-premises contracts, which is likely to be the situation if one of the following is true of the contract: • it
FLOWCHARTS
This flowchart illustrates the process of making a compensation event claim for additional time to complete the works and/or for additional payment under the NEC3 Engineering and Construction Contract. For more information
Q&As
Under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994 (the Order), SI 1994/1623, a respondent employer is entitled to make a contract claim (ie a contractual counterclaim) against a claimant if, and only if, that claimant has included a contract claim in their ET1 claim form which has been served on that respondent. The respondent employer is not permitted to make such a contractual counterclaim in response to an ET1 which does not include a contract claim (ET Rules, r 23, set out in the Employment Tribunals (Constitution and Rules of Procedure) Regulations 2013, SI 2013/1237, Sch 1). For
FLOWCHARTS
This flowchart summarises the interim payment process under the JCT Standard Building Contract
PRECEDENTS
ARCHIVED: This Precedent has been archived and is not maintained. The Contract comprises the completed the Intermediate Building Contract 2011 published by the JCT (as modified by Amendment 1: CDM Regulations 2015) subject to the following amendments: RECITALS Sixth Recital Sixth Recital Delete and replace with:‘The Contractor has supplied the Architect/Contract Administrator with a master programme and a Schedule of Information Requirements.’ ARTICLES Article 6 Article 6 At the end insert, ‘The Contract Sum includes the Contractor’s price for fulfilling the duties of Principal Contractor’. Article 8 Article 8 Arbitration Delete Article 8 and insert: ‘All references to arbitration in this Contract are deleted’. Article 10 Insert new Article 10 as follows: ‘Article 10 [To be added on the face of the contract] Schedule of Amendments The Employer and the Contractor agree that the modifications in the Schedule of Amendments attached hereto (as initialled by the parties) are incorporated into this Contract and the provisions of the Articles of Agreement, the Contract Particulars, the Conditions and the Schedules annexed to the Conditions shall have effect as modified by the Schedule of Amendments which together comprise the 'Contract.