Section 149(6) of the Law of Property Act 1925 (LPA 1925) provides that: ‘Any lease or underlease, at a rent, or in consideration of a fine, for life or lives or for any term of years determinable with life or lives, or on the marriage of the lessee, [or on the formation of a civil partnership between the lessee and another person,] or any contract therefor, made before or after the commencement of this Act, or created by virtue of Part V of the Law of Property Act 1922, shall take effect

This Q&A considers the likely approach that a lender will take in respect of collateral warranties and novation, in the context of a landlord constructing a building to be leased to a tenant, where the landlord wishes to obtain a mortgage over the freehold. As a result of the doctrine of privity of contract, collateral warranties are often necessary in construction projects in order to protect third parties with an interest in that project. Privity essentially means that a person may not enforce

Where an employee has taken a career break, the respective rights and obligations of the parties in relation to the terms on which such break is taken, and the terms on which the employee will return to work, will generally depend on what was agreed. Key issues for consideration include: • the status of the contract of employment during the break • whether continuity of employment is preserved during the break, or broken by the break • the statutory or contractual rights the employee may have during the break • the basis on which the employee is to return at the end of the break, and whether their

An employee may be suspended with pay during an investigation period. However, care must be taken in relation to suspension in order to avoid breaching the contract of employment, in particular the implied term of trust and confidence. It will be necessary to consider whether: • there is a contractual right to suspend • sufficient investigations were conducted before the employer takes the decision to suspend—suspension should not be a 'knee-jerk reaction' • the suspension is conducted in accordance with the procedures detailed in the employer's disciplinary and dismissals procedure • suspension

A worker is entitled to a redundancy payment when: • he or she is an employee • they have been continuously employed for not less than two years • they have been dismissed • the dismissal was by reason of redundancy The definition of dismissal for the purposes of entitlement to a redundancy payment is similar to the definition of dismissal used for unfair dismissal, and includes circumstances where an employer terminates the contract with or without notice. To establish whether or not a dismissal was by reason of redundancy, one would need to consider the definition of redundancy

This Q&A assumes the question is referring to a-business-to business transaction which is not subject to any specific industry or sector regulation. Issues which should be considered, without limitation, include: Initial transfer or assignment The purpose of an assignment agreement is to transfer the benefits of a contract from one of the original contracting parties (assignor) to a third party (assignee). The assignment agreement is the vehicle for effecting the assignment and is usually a consequence of an underlying agreement between the relevant parties that permit such

Documenting the transaction Overage is a covenant or contractual obligation by the buyer to make an additional payment to the seller in the event that specified events occur. A ‘success bonus’ payable if planning permission is granted, may very well be construed as akin to overage in this sense. Purely, from the point of view of documenting the parties’ agreement, there would seem to be no reason why the parties cannot document their agreements in whichever way they please be it by way of contract

Part II of the Landlord and Tenant Act 1954 (LTA 1954) provides for statutory security of tenure for most business tenancies. As a result, a tenancy does not expire by effluxion of time but continues and either the landlord or the tenant can apply to the court for the grant of a new tenancy. The landlord can terminate the tenancy only through following the procedure as set out in the Act. Under LTA 1954, s 38, parties cannot contract out of its provisions, save as permitted by LTA 1954, s 38A. This allows that the parties

Arbitration analysis: The High Court finds that Libya’s agreement in a Swiss-law governed contract in the terms ‘[b]oth parties agree that the decision of the arbitration panel shall be final, binding and wholly enforceable’ constitutes ‘written consent’ for the purposes of section 13(3) of the State Immunity Act 1978 (SIA 1978). The effect was to waive Libya’s immunity from execution and an interim charging order obtained by the claimant against Libya’s property in London was made final. Written by Hafsa Zayyan, senior associate at Quinn Emanuel Urquhart & Sullivan UK LLP.

The Council of the EU and the European Parliament have reached a provisional agreement on rules to strengthen the enforcement of passenger rights across the EU for all modes of transport. The measures seek to simplify, harmonise and improve consistency in the existing framework for travellers using air, rail, sea, inland waterways and bus transport. They cover key passenger rights, including the right to receive information at various stages of travel, the right to contract fulfilment and compensation and the right to the prompt handling of complaints. The provisional agreement still requires formal approval by both the Parliament and the Council of the EU.

TMT analysis: The terms of service of Elon Musk’s Starlink, a satellite internet constellation currently being constructed by SpaceX, has recently sparked a debate over the nature and limitations of current space law and whether or not it would benefit from an update. Given that a clause in a Starlink service contract requires participants to acknowledge Mars as a ‘free planet’, and the recent successful landing of NASA’s Mars 2020 rover mission, we discuss with Professor Donald Rothwell of the Australian National University the possibility of an international legal framework for Mars.

Crown Commercial Service (CCS) has published an article providing guidance on subcontracting for small and medium-sized enterprises (SMEs) in public procurement. Procurers are urged to facilitate SME access to contract opportunities, including indirect opportunities in the supply chain. The guide explains how SMEs can access public contracts through subcontracting arrangements with prime contractors. It outlines methods for SMEs to identify opportunities, including networking with suppliers, monitoring platforms such as Contracts Finder, and CCS agreements with neutral vendor models. The guide details potential benefits including access to larger projects and reduced administrative burden, while also highlighting potential challenges and complexities.