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Q&As
Jersey is part of the Channel Islands. The islands are a crown dependency. Form N510 can only be used where permission of the court is not required to serve a claim form out of the jurisdiction. it is therefore important to determine whether the court’s permission is required to serve the claim form in Jersey. Permission is not required if any of the provisions in CPR 6.33 apply. Where proceedings were issued prior to 31 December 2020 at 11 pm, permission will not be required if the provisions in CPR 6.33(2) apply. These cover proceedings in which: • the defendant is not a consumer, but is a party to a consumer contract within Article 17 of the Judgments Regulation • the defendant is an employer and a party to a contract of employment within Article 20 of
Q&As
Under the doctrine of privity of contract, the rights and liabilities created by a contract will bind the parties to it but no one else but, in relation to a covenant over land, property law may allow it to be enforced by and against persons other than the original parties. In most cases, the benefit of a positive covenant will benefit successors in title by ‘running with the land’ both in common law and in equity. The burden of a positive covenant will not run with the land in any circumstances even where the obligation is of the most straightforward kind (ie to maintain a boundary or a shared roof), see: Rhone v Stephens. There are various mechanisms commonly used to ensure that the burden of a positive covenant runs with the land
Q&As
The position on this will largely depend upon whether the relevant share option agreements are drafted to be deeds or to be bilateral contracts with consideration. In practice, share options are most often granted by deed in order to make sure that a validly binding contract is made. However, if a deed isn’t used then all the other requirements must be met in order for a binding contract to be made. This includes a need for consideration to paid by the prospective option holder to the grantor of the option in order for the share option to be granted to them. Therefore, typically, if a share option is not being granted by means of a deed then the share option terms will require the employee to make a nominal payment (such as £1) to the company in order for the company to grant the option to them. Bilateral contracts with consideration can be executed
Q&As
In respect of business-to-consumer (B2C) contracts for the supply of services, section 57 of the Consumer Rights Act 2015 (CRA 2015) (contained in CRA 2015, Pt 1) sets out certain rules on liability that cannot be excluded or restricted. In particular, CRA 2015, s 57(3) provides that: ‘[a] term of a contract to supply services is not binding on the consumer to the extent that it would restrict the trader's liability arising under any of sections 49 [(service to be performed with reasonable care and skill)] and 50 [(information about trader or service to be binding)] and, where they apply, sections 51 and 52 (reasonable price and reasonable time), if it would prevent the consumer in an appropriate case from recovering the price paid or the value of any other consideration. (If it would not prevent the consumer from doing so, Part 2 (unfair terms) may apply)’. A cap on the trader’s liability in a B2C contract
Q&As
A well-known problem amongst procurement professionals is the difficulty presented by the obligation under regulation 53 of the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102 (PCR 2015, SI 2015/102, reg 53), to make available the 'procurement documents' at the point at which a public contract is advertised in the Official Journal of the European Union (referred to as the Official Journal, or OJEU): ‘Contracting authorities shall, by means of the internet, offer unrestricted and full direct access free of charge to the procurement documents from the date of the publication in the Official Journal of a notice sent in accordance with regulation 51 or the date on which an invitation to confirm interest is sent.’ The question most frequently asked, in the context of public procurement under the restricted procedure (and other procedures where there is a pre-qualification stage before the contract award stage) is whether the invitation
Q&As
A zero hours employee or worker who has an over-arching or 'umbrella' contract with their employer will accrue holiday entitlement during the whole of the time that contract is in existence, whether or not they are actually doing work under it. In relation to holiday taken, the employee or worker must be paid at the rate of a week's pay for each week of leave. The sections of the Employment Rights Act 1996 (ERA 1996) regarding a week's pay apply for the purposes of calculating a week's pay for each week of leave, subject to modifications contained in the Working Time Regulations 1998, SI 1998/1833, reg 16(3). As a zero hours employee or worker will have no normal
NEWS
This week's edition of Local Government weekly highlights includes: the latest updates on public procurement and case reports on R (on the application of Wendy Smith) v SSHD (Friends, Families and Travellers and another intervening) which found amendments to certain provisions of CJPOA 1994 and PCSCA 2022 incompatible with ECHR; ADL and others v SSHD which found the SSHD acted unlawfully in failing to consider whether imposing a monitoring device was contrary to ECHR; Boohene and others v The Royal Parks Ltd dismissing an appeal claiming indirect racial discrimination contrary to EqA 2010 for failure to pay contract workers the London Living Wage; and Bhogal (Aka Mr Paramjeet Bhogal) v National Education Union dismissing an application for an interim injunction seeking a stay of disciplinary proceedings pending a trial of claim seeking declaratory relief that the claimant was entitled to legal representation. It also includes further updates on Governance, Social care, Healthcare and Social housing.
CHECKLISTS
This Checklist identifies the key issues that need to be kept in mind when working on a derivatives transaction in which different jurisdictions are involved. This Checklist should be read in conjunction with Practice Note: Cross-border derivative transactions—issues to consider. Issue What should be considered? Enforceability of the master agreement • Will the local law of a foreign counterparty to a derivative contract uphold the terms of an agreement in full? ◦ Will the standard contract provisions seen in derivatives’ markets such as netting, set-off or the use of a master agreement to govern multiple transactions be enforceable in foreign courts? ◦ Can the provisions of the agreement be challenged by a local insolvency practitioner in the event that a counterparty is in financial difficulty? Consider the
Q&As
This Q&A considers the interpretation of a force majeure clause in a business-to-business contract which is governed by the law of England and Wales. We have selected the following case law which may assist in understanding the approach of the courts to construing the words ‘beyond the reasonable control (of a party)’, in the context of force majeure. Great Elephant Corporation v Trafigura Beheer BV was a case involving a chain of contracts for the sale of Nigerian crude oil. The ship chartered to carry the oil, the Crudesky, was unexpectedly detained by Nigerian authorities due to a decision by the seller’s agent, Total, to commence loading of the ship in breach of certain guidelines. The delay caused loss to the ultimate buyer of the oil who sought to recover damages from the seller. In turn, the seller argued that the events were beyond its reasonable control. Among other relevant provisions in the contract was the following clause: 'Neither
Q&As
Summary A simple acknowledgement of a notice of assignment of a contract or debt by the relevant contract counterparty of the assignor (the recipient) when signed will not create binding obligations between the recipient and the assignee over and above those created by the subject matter of the assignment. Only if the notice seeks contractual undertakings from the counterparty and is supported by consideration can such additional obligations arise out of the signed acknowledgement. It will also be difficult for the assignee to establish a signed acknowledgement on its own constitutes a waiver of any right or forms the basis for a claim in estoppel. Useful materials For information in general on assignments by way of security and taking security over contractual rights, see Practice Notes: • Assignments by way of security, and • Taking security over contractual rights Assignments and the need for notice Under section 136 of the Law of Property Act 1925 (LPA
Q&As
Where the proposed security is a legal charge over specific property In general terms, a legal charge can be granted by a borrower by deed executed by that borrower without the lender having to execute the charge deed. Indeed, most legal charges are only ever intended to be signed by the borrower (chargor/mortgagor) and not the lender (chargee/mortgagee). A charge is a disposition of an interest in land, and is not merely a contract for such a disposition, so its execution does not have to comply with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) (which requires both parties to any contract for a disposition of an interest in land to be signed by them or on their behalf and to be embodied in one document incorporating
Q&As
Serving a valid notice to complete The contract for sale will make provision for service of a notice to complete, and they commonly will do this by incorporating the relevant standard conditions of sale which set out the procedure for and consequences of service of a notice to complete. It is important to state that notice is served in accordance with the relevant standard condition. On the assumption that the contract is governed by the Standard Conditions of Sale (Fifth Edition) (although this will need to be checked, and if a different edition applies then that edition will need to be considered): • paragraph 1.3 sets out the conditions for service of a valid notice, which includes a notice to complete. As you will see, paragraph 1.3.2 provides that giving notice or delivery in a document to a parties conveyancer