This Q&A assumes that the causes of action relied upon by the putative claimant are for breach of contract and in tort. Causation in claims for breach of contract The fundamental principle that underpins a claim for damages for a breach of contract is that there must be a sufficient causal link between the breach of contract and the loss suffered, that loss should not be too remote, and the claimant should not unreasonably incur losses arising from the relevant breach (often referred to as the ‘duty to mitigate’). For a fuller examination of these principles, see generally the Practice Note: Causation and remoteness in contractual breach claims. On the issue of causation specifically,

An unincorporated charitable association does not have its own legal personality. Therefore the charity’s trustees must sign on its behalf. In doing so the trustees themselves personally enter into the legal relationship with third parties and are personally liable under those agreements. The trustees are entitled to use charity funds to meet charity liabilities, but where there are insufficient funds to meet the liabilities, the trustees remain personally liable for the excess. It is possible for the agreement with the third party to limit the overall liability to the extent of charitable funds, but it is unusual for a commercial third party to agree to such a stipulation. Trustees may also be protected, depending upon the terms

In these circumstances, the trustees should transfer the deceased co-owner’s share of the legal and beneficial estate to the ultimate beneficiaries, subject to the lifetime trust of the surviving spouse in the Will. Co-ownership Where two or more people together own real property, they hold it under a trust of land. Where property is held on a trust of land, the legal estate and equitable estate are separate. The legal estate must be held by the co-owners as joint tenants. See section 1 of the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996). The beneficial interest in the property can, however, be held by the co-owners as tenants in common. On this point, see also Practice Notes: Buying property

Form of notice If the AGA itself specifies the form (eg in a schedule), this form should be used. Our standard form AGA (Authorised guarantee agreement) does not specify any such form. In the event that no form is specified, it is sensible to ensure that the notice clearly states

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246, reg 4(1), provides that a relevant transfer does not operate so as to terminate the contracts of employment of those employed by the transferor and assigned to the transferred group. Rather, by operation of law, the contracts of employment are automatically transferred to the transferee, as if originally made between the employee and the transferee. See Practice Notes: • TUPE—transfer of employees • TUPE—transfer of rights and liabilities The key concept in this regard is that the transfer is effected by operation of law. Unless the employee objects to the transfer under TUPE 2006, SI 2006/246, reg 4(7)—in which case the employment ends, again by operation of law (with no dismissal and no right to claim unfair dismissal)—their employment transfers to the transferee employer without that employer

Parental responsibility means all the rights, duties, powers, responsibilities and authority which by law a parent or a child has in relation to the child and their property. Both the father and mother will have parental responsibility for the child if they were married to each other at the time of the child’s birth. If not married, the father can hold parental responsibility as a result of being named on the birth certificate or by entering into a parental responsibility agreement with the mother. Similarly, a step-parent may also acquire parental responsibility. In the scenario of this Q&A it is slightly unclear whether the biological parent holds parental responsibility or whether it is simply the step-parent who holds parental

Where the trustees of a settlement are deemed to make a disposal for capital gains tax (CGT) purposes, for example where a person becomes absolutely entitled to the trust property as against the trustees, the provisions of section 38 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992), (Acquisition and disposal costs etc) will apply in the same way as they would apply to an actual disposal. TCGA 1992, s 38(1) provides that, except as otherwise expressly provided in TCGA 1992, the sums allowable as a deduction from the consideration in the computation of the gain accruing to a person on the disposal of an asset shall be restricted to: • the amount

It is assumed the trust has come to an end and that all that is required is a distribution of its assets. For a general discussion on the duties of trustees, see Practice Note: Trustees—duties. As can be seen, a principal duty is to preserve the asset but it is understandable that trustees in this situation may require relief

The procedural code that governs the small claims track is set out in CPR 27. This provides a simplified procedure that all parties should follow, the aim being to allow litigants in person to use the small claims track without the assistance of a lawyer. The court has an inherent jurisdiction to strike out any document or portion of a document. Neither the inherent jurisdiction nor the jurisdiction to strike out under CPR 3.4 are excluded on the small claims track. However, it is important to note that the jurisdiction under CPR 3.4 applies to statements of case. A witness statement is not a statement of case, and therefore, strictly speaking, that jurisdiction does not apply. It is also important to note that the automatic sanction for failing to serve witness evidence in

Please note that while reference is made to small claims, CPR 36 does not apply to matters proceeding on the small claims track (CPR 27.2(1)(g)). It has been assumed that the parties have not started proceedings under Part 8 (‘the Stage 3 Procedure’) as CPR 36.2 to 36.23 will not apply (see CPR 36.24). What happens when a party accepts a Part 36 offer but then fails to pay under the terms of acceptance? Enforcement of the terms of a Part

Amendments to statements of case Once served, a statement may only be amended with the written consent of the other parties or with the court’s permission. For further reading on amendments, see Practice Note: Amending a statement of case—introduction. Ordinarily, if a claimant amends their particulars of claim, they will be ordered to pay the defendant’s costs of and caused by the application. CPR PD 17 makes this clear: ‘A party applying for an amendment will usually be responsible for the costs of and arising from the amendment’. Of course, the usual cost consequences may be avoided if the defendant consents to the amendment and to not pursuing its, or there being no order for, costs. Costs of amending on the small claims track The costs regime for the small claims

Liability for inheritance tax (IHT) It is important to bear in mind the distinction between the burden of inheritance tax (IHT) and the liability for IHT. The burden (sometimes referred to as the incidence of IHT) concerns who ultimately bears the burden of the tax. This may or may not be the same person who has a liability to pay the IHT due. If a person is liable for IHT, they must account to HMRC for the tax due regardless of whether they ultimately bear the burden of the tax charged. Liability is therefore concerned with who HMRC may pursue for payment of IHT. Under section