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GLOSSARY
In the JCT form of contract, an event which entitles the contractor to additional payment.
PRACTICE NOTES
ARCHIVED : This archived Practice Note considers the implications of the EU case Association belge des Consommateurs Test-Achats v Conseil des Ministres (the Test-Achats case) and other related laws on the use of sex-based actuarial factors in insurance products and occupational pension schemes. It is not maintained. For guidance on whether EU judgments are binding on UK courts, see Practice Note: Assimilated law — Assimilated case law. Common insurance practices before the Test-Achats case Insurance companies used to apply certain common practices before the Test-Achats case: • statistically, women are likely to live longer than men, so insurance companies commonly offered women a lower annuity for the same capital sum because it has to be paid for longer • statistically, men have more car accidents than women, so insurance companies commonly charged men (and, in particular, young men) higher premiums for motor insurance • statistically, women are more likely to claim under health-related insurance policies than men, so insurance companies commonly charged women higher premiums for such policies These results
NEWS
Dispute Resolution analysis: The Court of Appeal has raised practical considerations for the timing of applications that a defendant has submitted to the court’s jurisdiction. It also sets out the principles to apply when determining the main place of provisions of services under article 5(1) of Regulation (EC) 44/2001 (Brussels I) as to which court has jurisdiction to hear a claim. Practical considerations as to the evidence required are also highlighted.
PRACTICE NOTES
The Standard Conditions of Sale (Fifth Edition—2018 Revision) (SCS) are a set of standard conditions which form the basis of the majority of contracts for the sale and purchase of residential property in England and Wales. For further guidance on the SCS, see Practice Note: Standard Conditions of Sale (Fifth Edition—2018 Revision)—a guide to the main provisions. This Practice Note looks at how the SCS provide for payment of the completion monies and the issues which commonly arise. It also considers some of the issues to consider when there is a mortgage to be discharged. How much is payable? Condition 6.4 provides that the amount payable by the buyer on completion is the purchase price and the contents price (less any deposit already paid to the seller or their agent) adjusted to take account of: • apportionments made under condition 6.3 (which deals with apportionments) • any compensation to be paid or allowed under condition 7.2 (which deals with late completion) • any sum payable under an insurance policy in accordance with condition
Q&As
Pursuant to clause 1.3 of PPC2000, all of the parties to a PPC2000 contract must ‘work together in the spirit of trust, fairness and mutual co-operation for the benefit of the project’. It is further noted at clause 3.1 that the concept of mutual co-operation includes ‘transparent and cooperative exchange of information in all matters relating to the project’. In Willmott Dixon Housing Ltd (formerly Inspace Partnerships Ltd) v Newlon Housing Trust, the terms of PPC2000 which require mutual cooperation were briefly discussed by Ramsey J at paragraphs 54 to 55, where he indicated
Q&As
It is not always clear cut when it comes to interpreting the language and meaning of a restrictive covenant, and each case will turn on its own facts. However, save where the context suggests otherwise, the starting point for the construction of a covenant is the natural or ordinary meaning of the words used or their conventional usage. The essential question of construction is the meaning that the wording of the covenant would convey to a reasonable person having all the background knowledge that would have been reasonably available to the parties when they were at the time of the contract. This exercise is to be conducted
Q&As
Effect of dissolution When a company is dissolved, its property, rights and assets are deemed to be bona vacantia by virtue of section 1012 of the Companies Act 2006 (CA 2006). Accordingly, they belong to and automatically vest in the Crown, or the Duchy of Lancaster or the Duke of Cornwall for the time being (as the case may be). This will include the benefit of the contract which gave rise to the entry of the class c(iv) land charge. Under CA 2006, s 1013,
Q&As
As a general proposition, an option or agreement to surrender is a contract like any other. It would be possible, therefore, for a tenant (T) and a potential future landlord (X) to agree that T will surrender its lease if X acquires the reversion to the lease (and so becomes T's landlord). However, it should be borne in mind that there may be statutory requirements that need to be satisfied. If the lease has security of tenure under Part II of the Landlord and Tenant Act 1954 (LTA 1954), any agreement to surrender would need to be preceded by service of a landlord's warning notice and an appropriate declaration by the tenant.
Q&As
A guarantee is an agreement by way of contract where the guarantor agrees to perform the obligations of another. Guarantees are commonly seen in contracts and in leases, to the effect that if the principal does not comply with their obligations (for example to pay a loan, or in this scenario to comply with the lessee covenants under the lease of the third party), the guarantor will be liable. As a result, should the tenant default, the landlord is entitled to look to the guarantor (often to take on the lease, but otherwise to
Q&As
A subtenancy is a tenancy created out of the headlease and will ordinarily mean that there is no privity of contract between the subtenant and the freeholder. It is well-established following the line of authorities approving the Court of Appeal decision in Pennell v Payne that determination of the headlease by notice also determines a sublease (see, for example, the decision of the House of Lords in Barrett v Morgan). In PW & Co v Milton Gate Investments Ltd, it was noted that a lease creates an interest in land, and where the tenant grants a subtenancy, they are granting
Q&As
For information on the right to shared parental leave on birth generally, see Practice Note: Shared parental leave (birth). Under the Shared Parental Leave Regulations 2014 (SPL Regs 2014), SI 2014/3050, reg 39 the right to be offered a suitable alternative vacancy arises where ‘during a period in which the employee is taking shared parental leave’, it is not practicable by reason of redundancy for the employer to continue to employee them under their existing employment contract. Shared parental leave may be taken as one continuous period (or block), or in discontinuous periods (SPL Regs 2014, SI 2014/3050, reg 7(3)). The right under SPL Regs
Q&As
Where an employee is assigned to the business or undertaking which is to be transferred, the employee has a right to object to being transferred. If the employee makes an objection to transferring which is effective under regulation 4(7) of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246, the transfer will terminate his contract of employment with the transferor. That termination, brought about by the making of the objection, is not treated, without more, as a dismissal by the transferor, ie it cannot create a right to make any claim against the transferor based on a dismissal.