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Q&As
This Q&A assumes that the warranty is provided by the manufacturer pursuant to a B2B contract for generic goods and services and which are not subject to specific industry or sector regulation which would need to be additionally considered. B2C contracts Business to consumer (B2C) contracts offer much more protection for consumers as they are subject to far more regulation for the purposes of protecting the consumer. For example, under section 20 of the Consumer Rights Act 2015 the consumer has the right to reject goods and may be entitled to a refund. There are numerous regulations conferring protection upon consumers in B2C contracts both for goods and services, such as the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134, the Provision of Services Regulations 2009, SI 2009/2999,
Q&As
It is assumed that for the purposes of the question, ‘defective’ means a failure to conform to a contract (including the implied terms of quality and fitness) under the Consumer Rights Act 2015 (CRA 2015), and does not mean ‘defective’ for the purposes of section 3 of the Consumer Protection Act 1987 (CPA 1987) (ie unsafe). Remedies for non-conforming goods The CRA 2015 lays out statutory remedies available to consumers for breach of their statutory rights, which includes: • the short-term right to reject (see CRA 2015, ss 20 and 22) • the tiered remedies, consisting of first tier remedies—right to repair or replacement and second tier remedies—right to price reduction or final right to reject (see CRA 2015, ss 20–24) See Practice Note: Consumer Rights Act 2015—goods—Remedies for non-conforming goods. Short term right to reject Short-term right to reject goods are usually exercised within 30 calendar days, beginning on
Q&As
The Employment Rights Act 1996 (ERA 1996) permits an employer to make a deduction from a worker’s ‘wages’ (as defined in ERA 1996, s 27) if: • the deduction is required or authorised to be made by virtue of: • a statutory provision, eg the requirement to make deductions for income tax or National Insurance contributions via Pay As You Earn (PAYE), or • a relevant provision of the worker's contract, eg where the employer provides a loan to the worker and has a contractual right to take money out of the worker's wages in repayment, or • the worker has previously signified in writing their agreement or consent to the deduction For further information, see, generally, Practice Note: Deductions from wages, and in particular the main section
Q&As
It is extremely difficult to obtain an order for possession of a regulated tenancy so a landlord may wish to consider negotiating a surrender at an early stage—this will give certainty that possession can be regained. This question discusses the situation where a surrender has been agreed in return for payment of a premium to the tenant. See Practice Note: Vacant possession strategy for redevelopment. The tenant can enter into a contract to surrender, but it cannot be enforced against them. This is on the basis that the security of tenure conferred by the Rent Acts is lost only by a possession order made by a court, by the tenant giving up possession, by their ceasing
Q&As
The issue of conclusivity may arise as regards to a conflict between the name and registered number of a company on the face of one or more documents. Such inconsistencies and mistakes may create issues relating to identity, privity and capacity. Problems such as this may arise due to simple typographical errors, or where there are a number of group companies with similar names. Inconsistency within same document On balance, the issue here is perhaps more a question of contractual interpretation than company law. From the point of view of contract law and the intention of the parties, as derived from the line of cases since Investors Compensation Scheme v West Bromwich Building Society (including Chartbrook v Persimmon Homes Limited), contractual provisions will be interpreted in accordance with what the parties are considered to have intended, judged objectively and in the light of the relevant factual background known to both parties. Disputes may naturally arise where parties seek to exploit inconsistencies
Q&As
A party to a lease may have the benefit of rights over land other than the demised premises (whether owned by the landlord or some other person). Such rights will invariably be easements, eg rights of way, rights of light etc. See Practice Note: Easements—nature and characteristics. It is trite law that an easement may be brought to an end by release and, at law, a deed is required for the express release of an easement (in equity, something less may be effective, eg an enforceable contract, estoppel etc). In order to execute a deed, a number of formalities must be complied with: (i) the deed must be in writing; (ii) it must be clear from the face of the document that it is a deed and intended to be a deed; (iii)
Q&As
Under section 13 of the Supply of Goods and Services Act 1982 (SGSA 1982) a consultant (as a professional) providing services must do so with 'reasonable skill and care'. The statute does not require the exercise of 'all reasonable skill and care'. However, the parties can choose to impose a higher duty than this (SGSA 1982, s 16(3)(a)). There is no settled meaning of the specific term 'all reasonable skill and care' as opposed to 'reasonable skill and care'. There are cases considering whether a party has exercised reasonable skill and care, and the general meaning of reasonable skill and care, however, none of these look at the particular impact of adding the word 'all'. Within judgments, the two expressions appear to be used interchangeably: even where the contract at the centre
Q&As
The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) only applies to contracts for construction operations. The relevant parts of HGCRA 1996 dealing with what is within and what is outside the scope of HGCRA 1996, Pt II are HGCRA 1996, ss 104 and 105. Construction operations The starting point is HGCRA 1996, s 105 and the definition of ‘construction operation’. While HGCRA 1996, s 105 refers to ‘maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not)’, there is no reference to operating such plant. Therefore, while the maintenance element of a contract relating to the operation and maintenance of power generating plant could fall within the definition of construction operation, the operation element would not. Forming part of the land The maintenance element would only fall within the definition at HGCRA 1996, s 105 if it relates to ‘buildings or structures forming, or to form, part of the
Q&As
This Q&A focuses on the considerations that should be borne in mind when purchasing goods from overseas suppliers and covers the prevalent considerations in business-to-business transactions for the sale and purchase of goods which are not specifically regulated. In particular, see Practice Note: International supply of goods—checklist for general guidance on the issues to be considered. In respect of provisions of international law which are similar to the statutory provisions within the UK, consideration must first be given to the governing law of the contract and local advice may be required. Including a governing law clause in favour of the laws of England and Wales will give a purchaser or seller a degree of comfort (because a party can easily point to what these are in the event of any dispute or breach). However, even if a party are successful in agreeing an English governing
Q&As
How can a right of pre-emption be protected at the Land Registry and are there time limits for registration of a pre-emption agreement at the Land Registry? Registration of pre-emption agreement dated before 13 October 2003 If the right of pre-emption was granted prior to 13 October 2003, it is not treated as an interest in land and therefore is not capable of protection by registration of a notice at its grant, although it is arguable that it matures into a proprietary interest when the seller’s obligation to offer the property to the buyer arises. At this point, the right of pre-emption may be registerable as an estate contract under the Land Charges Act 1972 (Pritchard
Q&As
As stated by North J, in the case Re Lowe, Danily v Platt (1892) 61 LJ Ch 415 (not reported by LexisNexis®): 'I do not see how I can avoid holding that where, in a gift to “children”, there being both legitimate and illegitimate children, there is an exception of one of the illegitimate children, the word “children” is intended to include both classes.' When interpreting a contract, the court is concerned to find the intention of the party or parties, and it does this by identifying the meaning of the relevant words (Marley v Rawlings), in the light of: • the natural and ordinary meaning of those words • the overall purpose of the document • any other provisions of the document • the
Q&As
Stamp duty land tax (SDLT) is charged on the acquisition of interests in UK land. SDLT is payable by the purchaser of the interest in land in relation to any notifiable land transactions. SDLT is charged as a percentage of the total amount paid in respect of a land transaction. In the case of leases, this includes any premium (usually a lump sum payment on the grant of a lease) and any rent. The purchaser must: (i) notify HMRC about notifiable land transactions and (ii) pay any applicable SDLT within 30 days after the effective date of the land transaction in question. The effective date for most land transactions will be the date of completion. A person is not regarded as entering into a land transaction by reason of entering into a contract to acquire UK land. However,