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CHECKLISTS
This Checklist is primarily for use on the assignment of a commercial lease. It is not exhaustive and will not cover every eventuality for every transaction. You must always consider whether there are any other issues that need to be addressed. It assumes that: • the lease is a lease of commercial property let at an open market rent to an occupational tenant under terms where the landlord insures the property • the assignor occupies the property for the purposes of their business and the assignee also intends to occupy the property for the purposes of their business • the lease is a head lease and the property is not subject to any underleases • the lease is not subject to a fixed charge (in practice this would be unusual), and • no premium is payable If the assignment is part of a larger or more complex transaction, further relevant content may be found in Sale of commercial property (seller)—checklist and Practice Note: Transferring commercial property—a practical guide. If acting for the assignee,
NEWS
This week's edition of Local Government weekly highlights includes the latest developments on local government reorganisation, including Hampshire County Council and Portsmouth City Council launching judicial review proceedings against the government's Hampshire LGR plans. It also features updates on public procurement, including Procurement Policy Note 025 on protecting national security through public procurement, alongside updated guidance on Procurement Act 2023 contract payment information. Case analysis includes BNF v Newport CC on the High Court's ruling that a council's approach to respite care was unlawful, Thomas Connors v Bromley LBC, on the scope of section 70C of the Town and Country Planning Act 1990 and the relevance of policy changes when declining to determine planning applications, and Barclay and CAGNE v SoST, in which the High Court upheld development consent for Gatwick Airport's northern runway project. Case reports include Hylton v Medway Council, in which the High Court quashed the council’s refusal to provide interim care support pending reassessment and Asiimwe v Lambeth LBC, in which the High Court remitted a reasonable adjustments claim concerning out-of-borough temporary accommodation. It also includes further updates on Local government reorganisation, Public procurement, Adult social care, Planning, Children's social care, Social housing, Education, Governance, Local authority prosecutions and Healthcare.
GLOSSARY
Anticipatory breach is where the seller has repudiated the contract prior to the time fixed for delivery of the goods, the buyer may then accept the repudiation and the damages is the difference between the contract price and the value of the goods at the time fixed for delivery.
PRECEDENTS
Agriculture Objective Action step Indicator Ensure the organisation only sources its UK contract farm labour from reputable agencies. Undertake review of all agency relationships in the UK by [insert date] to ensure that those supplying labour hold a current gangmaster’s licence. [100]% of labour suppliers hold a current gangmaster’s licence. Ensure all farms in our supply chain meet minimum labour standards and all labourers have a right to work in the UK. Undertake spot checks of [x number or %] of supplier farms in the UK by [insert date] to confirm labour conditions are consistent with [insert relevant benchmark] and that all labourers have a right to work in the UK. Number of sites audited, the degree of access given (including to worker records in relation to rights to work), and the number and seriousness of breaches identified against [insert relevant benchmark]. Ensure our suppliers are openly
PRECEDENTS
[Insert in para 8.2 of claim form ET1:] 1 The Claimant is a [woman OR man] employed by the Respondent as a [insert job title, eg sales assistant] at its establishment at [insert address]. The Respondent is a [insert details, eg a national supermarket chain]. 2 The Claimant’s claim is for equal pay. 3 The Claimant’s contract of employment includes the following terms: 3.1 [insert details of relevant term, eg pay of £12.50 per hour] 3.2 [insert details of relevant term, eg an entitlement to the statutory minimum of 28 days of paid annual leave] 4 [Insert name of comparator] (the comparator) is a [man OR woman] who is [insert details of how the comparator is a relevant comparator for the purposes
PRECEDENTS
[To be typed on headed notepaper of transferee] [ Strictly private and confidential ] [Address] [Date] Dear [enter name(s) of relevant individual(s) at the transferor], Proposed transfer of [enter details] to [enter name of transferee] I refer to the proposed [disposal of your business to us OR outsourcing of your [identify business function] to us OR termination of your contract to provide [identify services] services to [us OR identify client] ] [ and to your letter dated [enter date of any letter sent by the transferor to the transferee requesting details of proposed measures]]. I write in my capacity as [enter position] of [enter name of transferee], and as required by Regulation 13(4) of the Transfer of Undertakings (Protection of Employment) Regulations 2006, to [confirm that [enter name of transferee] does not
Q&As
A right of pre-emption on the transfer of shares prohibits a shareholder from selling its shares to a non-shareholder without first offering them to the holder of the right of pre-emption. There are no provisions in the Companies Act 2006 (CA 2006) relating to pre-emption rights on transfer and, as such, any pre-emption rights on transfer must be imposed by contract (ie in a company’s articles of association and/or shareholders’ agreement). The law recognises pre-emption clauses as valid restrictions on the right to transfer. The provisions of the articles of association of the company and/or shareholders’ agreement should be carefully considered, in order to determine whether there are any relevant exemptions to the pre-emption rights. If, having done so, compliance with the pre-emption rights on the transfer of shares is
Q&As
Finance lease Asset finance is a method of providing financing for the purchase of particular tangible movable assets. In an asset finance transaction, the lessor is the owner of the asset and the user of the asset is the lessee. A finance lease is described as a lease which transfers substantially all of the benefits and risks associated with the ownership and use of the asset to the lessee, leaving the lessor with only the financial risks and benefits. The lessor acquires the asset from the manufacturer for the purposes of leasing the asset to the lessee. The contract of the sale relating to the asset is between the manufacturer/supplier and the lessor. The lessor then leases the asset to the
Q&As
Where an employee has potential claims against the employer under the Employment Rights Act 1996 (or other employment legislation, or where the employee would otherwise have a claim for breach of contract, a settlement agreement (formerly known as a compromise agreement) can (in most cases) be entered into by the employee and employer to end the employment on the terms set out in that agreement. Among other things, the settlement agreement will deal with all payments and benefits owing or agreed to be paid to the employee. While the settlement agreement is signed on termination, not all payments and benefits within it will necessarily fall within Chapter 3, Part 6 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) which is a specific set of provisions dealing with payments and benefits
Q&As
The mortgagee will usually have a power of sale both under the terms of the contract and under statute. Nothing in the latter power renders the former invalid. As a result, however, of the extensive power, it is seldom necessary to have regard to any contractual power which is reserved. Where a mortgage is granted by deed, unless it provides to the contrary the mortgagee has the power once the mortgage money has become due, to sell the land. This is when the power is said to arise. It cannot be exercised however until either the mortgagor is in default for three months following service of a notice requiring payment to be made; two months interest remains unpaid or there is some other breach of the terms
Q&As
When it is asked, ‘can the landlord insist…?’ there are three matters to consider generally—first, the extent of the tenant’s reinstatement obligation, secondly, whether the landlord can obtain specific performance of that obligation and thirdly, if the tenant is in breach of that obligation, can the landlord obtain damages? The first issue (in the context of this question) is then whether it is possible that the tenant’s obligation is to remove a more advantageous installation at the end of the lease and put back an inferior one. The answer here is, yes—of course, it is possible. Ultimately, whether an obligation to reinstate arises in the lease itself or as one of the terms included in a deed of licence, the matter is one of the proper construction of the contract. In this connection, it should be noted
Q&As
Where the rules of an enterprise management incentives (EMI) share option scheme allow for the rules to be amended, the amendment is often possible subject to any prior shareholder approvals that must be sought pursuant to the rules of the EMI scheme, any shareholders’/investor agreements or any other constitutional documents of the company. If no approvals are required, a board resolution may be sufficient authority to make the required changes. As each EMI option is a contract between the grantor and the option holder, the option holder's agreement may also be required in each case, depending upon the nature of the particular amendment. The more pertinent issue is whether the specific amendment will affect the tax-advantaged treatment of any subsisting share options that have been granted