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PRACTICE NOTES
This Practice Note considers how some of the common challenges which can arise in disputes between multiple parties (multi-party disputes) and/or concerning multiple contracts (multi-contract disputes) may be managed in arbitration proceedings. Such proceedings are sometimes referred to as ‘complex arbitrations’, although that phrase bears other meanings too. Multi-party and multi-contract disputes are common, reflecting the complexity of international commercial transactions. As discussed in Practice Notes: Arbitration—an introduction to the key features of arbitration and Arbitration—new starter guide, arbitration is, typically, a private, contractual method of dispute resolution, which offers parties meaningful control over who determines their dispute and the procedure that will be followed. Indeed, the ability to influence how proceedings will be structured and conducted is one of the commonly-cited reasons why parties—particularly commercial entities involved with cross-border transactions and/or projects—choose arbitration over, say, litigation in national courts. In contrast to resolving a dispute between two parties arising out of a single agreement, the presence of multiple parties and/or multiple contracts may present challenges both when drafting dispute resolution mechanisms and when disputes arise. Multi-contract
NEWS
Construction analysis: The Royal Institute of British Architects (RIBA) has published a new Building Regulations Principal Designer Professional Services Contract. In this article, we analyse what the contract contains and in particular how it deals with the new requirements placed on Building Regulations Principal Designers.
Q&As
The right not to be unfairly dismissed is only available to an ‘employee’. For these purposes, ‘employee’ is defined as an individual who has entered into or works under a contract of employment, ie a contract of service or apprenticeship, whether express or implied and whether oral or in writing. For further information, see Practice Notes: • Entitlement to claim unfair dismissal, and • Employee status The employment tribunal has jurisdiction to consider
CHECKLISTS
This Checklist sets out the issues to be considered and steps to be taken to terminate a periodic standard occupation contract of a dwelling in Wales under the Renting Homes (Wales) Act 2016 (RH(W)A 2016) including the grounds on which possession can be sought, the pre-conditions to be complied with, notice requirements, methods of service and additional considerations once a notice has been served. For further guidance, see Practice Note: Renting Homes (Wales) Act 2016—terminating standard occupation contracts and recovering possession. On what grounds can possession be sought? Check that there are grounds on which possession can be sought. The grounds applicable to a periodic standard occupation contract are: • breach of contract • estate management grounds • the landlord was induced to enter the contract as a result of a false statement by the contract-holder • ‘no fault’ ground ie the landlord can serve notice to terminate due to no fault on the part of the contract-holder • serious rent arrears For further guidance on the
Q&As
If your dispute arises out of a contract which includes a provision for interest then it is usual for you to seek to recover: • interest at the contractual rate as set out in the contract, and • in the alternative, interest as the court may in its discretion order under section 35A of the Senior Courts Act 1981, section 69 of the County Courts Act 1984 or under certain other statutory provisions eg the Late Payment of Commercial Debts (Interest) Act 1998). Where a claim to contractual interest is valid, the court will not be able to apply a different rate
Q&As
We refer you to the following Practice Notes set out below, found in the Lexis+® UK® Commercial module subtopic Contract termination—overview, which may provide helpful guidance in relation to this Q&A. • Terminating commercial contracts, which sets out various legal factors to consider when examining exit routes from commercial agreements • Termination and expiry of contracts, which sets out
NEWS
Dispute Resolution analysis: Discussing the case of Blue v Ashley, Tom Snelling, a partner at Freshfields Bruckhaus Deringer, and Rachel Stephens, a knowledge lawyer in the firm’s disputes group, point out that practitioners need to be mindful when advising their clients that the court will be quick to spot ‘the human capacity for wishful thinking’ when it sees it.
PRACTICE NOTES
The tenant covenants and service charge provisions will determine whether the tenant has to pay for works relating to the land, buildings and fixtures such as: • energy efficiency improvements • asbestos surveys and remedial work • improvements recommended in fire risk assessments • maintenance of above ground and underground storage tanks
PRECEDENTS
Schedule of amendments to the jct intermediate building contract with contractor’s design 2011 ARCHIVED: This Precedent has been archived and is not maintained. The Contract comprises the completed the Intermediate Building Contract with contractor’s design 2011 (as modified by Amendment 1: CDM Regulations 2015) published by the JCT subject to the following amendments: RECITALS Seventh Recital Seventh Recital Delete the first sentence and replace with the following:‘The Contractor has inspected the Site and satisfied himself as to its dimensions, location and other relevant matters, has examined the Employer’s Requirements and is satisfied that the Contractor’s Proposals will meet the Employer’s Requirements, and has agreed to accept responsibility for the entire design contained in the Employer’s Requirements and the Contractor’s Proposals.’ Ninth Recital Ninth Recital Delete and replace with:‘The Contractor has supplied the Architect/Contract Administrator with a master programme and a Schedule of Information Requirements.’ ARTICLES Article 6 At the end insert: Article 6 ‘The Contract Sum includes the Contractor’s price for fulfilling the duties of Principal Contractor.’ Article 8 Article 8 Arbitration Delete Article 8 and insert ‘All references to arbitration in this Contract are
Q&As
It is assumed that the query relates to a business-to-business contract. Contracts may be varied in a number of different ways. For example: • written variation • oral variation • variation by conduct • unilateral variation • waiver • sustained minor breach For more information, see Practice Note: Contract variation. Commercial contracts, particularly, those where the parties are committed to a long-term or high value relationship, may include mechanisms for the parties to agree variations to the contract terms during its lifetime. For example, see: • Clause 10 and Schedule 13 of Precedent: Outsourcing agreement—long form • Precedent: Price variation
Q&As
A repudiatory breach is a breach of contract that gives the innocent party the right to treat the contract as being disregarded and entitling the innocent party to refuse to be bound by its terms. Not all contract breaches are repudiatory. A repudiatory breach goes to the core of the contract and must substantially deprive the innocent party of the absolute benefit that the contract was intended to provide. What amounts to a repudiatory breach will vary with each contract and depends on the construction of the contract and the circumstances of the case. Anticipatory breach may constitute repudiatory breach. The test for whether an anticipatory breach is also repudiatory is the same as for an actual breach, ie breach of a condition, or breach of an innominate term which goes
PRECEDENTS
ARCHIVED: This Precedent has been archived and is not maintained. The Contract comprises the completed Standard Building Contract With Approximate Quantities 2011 published by the JCT (as modified by Amendment 1: CDM Regulations 2015) subject to the following amendments: RECITALS Fifth Recital Fifth Recital Delete the Fifth Recital and substitute:'The Contractor has supplied the Architect/Contract Administrator with a master programme and a Schedule of Information Requirements.' Twelfth Recital Twelfth Recital Delete the first sentence and replace with:'The Contractor has inspected the Site and satisfied himself as to its dimensions, location and other relevant matters, and where there is a Contractor’s Design Portion, has examined the Employer’s Requirements and is satisfied that the Contractor’s Proposals will meet the Employer’s Requirements, and has agreed to accept responsibility for the entire design contained in the Employer’s Requirements and the Contractor’s Proposals.' ARTICLES Article 6 Article 6 At the end of Article 6 insert:'The Tender Sum includes the Contractor’s price for fulfilling the duties of Principal Contractor.' Article 8 Article 8 Arbitration Delete Article 8 and insert 'All references to arbitration in this Contract