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PRACTICE NOTES
This Practice Note examines the doctrine of consideration and the key role it plays in English law in determining whether a contract is enforceable. A promise will only be capable of being contractually enforced if it is either made in a deed or made in exchange for something of value, known as 'consideration'. This Practice Note considers what amounts to valid consideration. It considers what can amount to valid consideration, executory consideration and executed consideration, benefit and detriment, past consideration, adequacy of consideration, when performance of existing duties can be valid consideration, including when varying an existing contract. Note: settlement offers made under CPR Part 36 operate outside the general rules of contract law and are governed by the specific regime set out in CPR 36. See Practice Notes: Part 36 offers—what are they, why make them? and Part 36 offers—how to make a valid Part 36 offer. For guidance on the specific requirements for documenting promises by way of a deed, see Practice Note: Deeds. What is consideration? Consideration is a key ingredient for
PRACTICE NOTES
An intention to create legal relations is required There are various situations in which a court will hold that an agreement is not binding because, though supported by consideration, it was made without any intention of creating legal relations (see, eg, Blue v Ashley). Did the parties intend to create legal relations—a question of fact Whether or not the parties to a contract have the requisite contractual intention is a question of fact, to be decided by reference to the particular circumstances of each case. However, the cases recognise that, in certain situations, there is a presumption that such intention will be lacking. Proving the intention to create legal relations—express agreements In an ordinary commercial context, it is not normally necessary to prove that the parties to an express agreement in fact intended to create legal relations. Absent proof to the contrary, it will be presumed that the parties did have such intention. The onus of proving that there was no intention is on the party who asserts that no legal
PRACTICE NOTES
This Practice Note considers the requirements for a legally binding offer. In so doing, it considers: • what we mean by 'offer' • how to distinguish an offer from an invitation to treat, with relevant common examples • different species of offer, ie offers which are ‘subject to contract’, heads of terms and unilateral contracts • how offers can be terminated For practical guidance on how an offer can be validly accepted, see Practice Note: Forming contracts—acceptance. For guidance on the court’s overall approach to contract formation, see Practice Note: Forming enforceable contracts—the court's general approach. Note: Part 36 settlement offers made under CPR 36 operate outside the general rule of contract law and are governed by the specific regime set out in CPR 36. For guidance on what amounts to a valid Part 36 offer, see Practice Note: Part 36 offers—how to make a valid Part 36 offer. The elements of a legally binding offer A legally binding offer has the following elements: • the party making the offer ('the offeror') has the intention, objectively
PRACTICE NOTES
Note: this Practice Note is concerned only with the creation of binding legal relations by way of contract (whether in writing or orally) and is not concerned with those arrangements which require to be made by way of deed in order to be valid, on which see Practice Note: Deeds. Although many will be familiar with the key requirements for a finding of a contractually binding agreement, such as offer, acceptance, consideration, certainty etc (see: Forming enforceable contracts—overview), it is helpful to understand the court's general approach in this respect and how it ties in those key requirements. The essential ingredients of an enforceable contract The essential ingredients for establishing the existence of an enforceable contract are: • offer and acceptance • consideration (unless the contract is one executed by deed) • an intention to create legal relations (ie an intention to be legally bound) • certainty There is much more to the statement of these broad principles, as can be seen in the Practice Notes on these concepts: • Forming enforceable contracts—offer • Forming
PRECEDENTS
These Training Materials relate to forming enforceable contracts and contain template PowerPoint slides and associated notes for use by a trainer when outlining the law relating to the formation of contracts in the context of the typical activities undertaken by commercial contracts lawyers. Topics covered include: offer, acceptance, battle of the forms, standard terms and conditions, consideration, intention to create legal relations, capacity, authority and certainty. The training materials are customisable. Click the link below to download the PowerPoint presentation. Contents • Forming enforceable contracts: — Typical tasks — Offer
GLOSSARY
An agreement (as to children arbitration (ARB1CS) or financial arbitration (ARB1FS) that binds the parties to arbitrate and also to accept the rules'>IFLA rules of the respective scheme.
PRACTICE NOTES
The Lexis+ UK Restructuring & Insolvency module hosts various forms which may be useful for restructuring and insolvency professionals consisting of the following: • HMCTS forms • Insolvency Service forms • Companies House forms • HM Land Registry forms • forms created by the LexisNexis® forms committee • forms published in Encyclopaedia of Forms and Precedents LexisNexis® forms committee In February 2017, LexisNexis® created a committee of the following leading insolvency professionals to establish standard form documents for use across the market: • Chief Registrar Stephen Baister (now retired) • David Leibowitz, Restructuring and Insolvency partner at Mischon De Reya • Frances Coulson, Head of Insolvency and Restructuring at Wedlake Bell • Jeremy Goldring KC, barrister at South Square • Alison Curry, former Head of Regulatory Standards & Support at the Insolvency Practitioners Association and technical manager at AlixPartners • Mark Sands, Past President of the Insolvency Practitioners Association and partner at Opus Business Advisory Group We adopted the following naming convention for the forms created by the LexisNexis® forms committee: • Insolvency
PRACTICE NOTES
This is an alphabetical listing of links to selected application forms for UK immigration appeals, administrative review and judicial review applications. A selection of bail-related forms dealt with by tribunals is also included. Note that most appeals to the First-tier Tribunal (Immigration and Asylum Chamber), where the appellant is represented and not in detention, are submitted using the MyHMCTS portal (see: Make an immigration and asylum appeal using MyHMCTS). Where the appellant is not represented they can also apply online, see Appeal against a visa or immigration decision (GOV.UK). Forms should only be used where appealing online is not possible or there is another good reason that can be justified or the use of a form has been requested.
PRACTICE NOTES
Note on public procurement post-Brexit The Implementation Period under the EU-UK Withdrawal Agreement came to an end on 31 December 2020 at 11:00 pm GMT (IP Completion Day), and all the changes introduced under the Public procurement (Amendment etc) (EU Exit) Regulations 2020, SI 2020/1319 to the existing EU-derived public procurement legislation have now come into force (with the exception of the amendments set out in Regulations 7, 9, 11 and 16). This Practice Note has been updated to take into account these post-Brexit changes. In addition, the UK government has published high-level guidance on public procurement post-Brexit, which has been updated after the IP Completion Day: Public procurement policy and Public-sector procurement. Overview Public Private Partnerships Public Private Partnerships (PPPs) should focus on promoting efficiency in public services. This can be done through risk sharing and utilising private sector expertise. Sources of capital which can be offered by the private sector can also relieve the pressure on public financing which is increasingly required. There are numerous forms
PRACTICE NOTES
There are certain protocols that need to be followed when addressing members of the judiciary. These protocols apply both to communications by way of correspondence and
PRACTICE NOTES
This fundamentals note considers the key features of various different forms of business or trading vehicle, including sole traders, partnerships, limited partnerships, limited liability partnerships and companies. There are many forms of business vehicle and it is important that the most appropriate form of vehicle is chosen to carry on a business; the choice of vehicle may have a bearing on the business’s success or failure. Not every vehicle will suit the needs and demands of a business. Each vehicle has its advantages and disadvantages. The decision as to which vehicle to use to carry on a particular business will be complex and is dependent on various legal, tax and commercial considerations; there may not be a perfect fit. In addition, the vehicle originally chosen to carry on a particular business may not continue to be the right choice for that business as it develops and matures. The vehicle chosen to carry on a business should be kept under periodic review. If the original choice of vehicle to carry on a business becomes unsuitable, an alternative
PRACTICE NOTES
When one or more individuals decide to start a business, they have a choice as to what vehicle they operate that business through. In addition to the commercial and legal reasons for that choice (see Practice Note: Forms of business vehicle), the tax treatment of each different form of vehicle will often be a decisive factor in whether it is appropriate for carrying on a particular business. Before assessing how tax issues influence the choice of business vehicle, it is useful to understand the basics of how each type of vehicle is taxed. This Practice Note summarises the tax implications of running a business as a: • sole trader • general partnership • limited partnership • limited liability partnership, and • limited company For the sake of simplicity, this Practice Note assumes that one or more UK resident unconnected individuals decide to establish a trading business in the UK on a commercial basis. This is a summary of the general issues and does not cover the detailed rules or application of them to specific circumstances. A