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Q&As
It is frequently the case, particularly in lettings of rooms in Houses in Multiple Occupation, that the rent reserved by the lease or tenancy agreement will be inclusive of services such as broadband, or water charges etc. The question is whether, if the tenant fails to pay the reserved rent, the landlord can suspend the provision of the inclusive services. As a matter of contract, the landlord has agreed to provide the tenant with exclusive occupation of the demised premises with the services agreed to be provided. The tenant in return agrees to pay the rent and, possibly, perform other covenants contained in the tenancy agreement. A breach by the tenant does not generally allow the landlord to cease to provide
Q&As
The purpose of Part I of the Landlord and Tenant Act 1987 (LTA 1987) is to require the landlord of a block of flats who wishes to dispose of the freehold or some other interest in the block or its common parts, but not the grant of a lease of a single flat, the right of first refusal to the qualifying tenants within the block to collectively acquire that interest on the same terms proposed by the landlord. If the landlord wishes to make such a disposal (disposal includes entering into a contract to sell an interest) he is obliged to serve a notice under LTA 1987, s 5 on the qualifying tenants. A person in occupation of a flat under an assured shorthold tenancy or pursuant to a tenancy terminable on cessation of his employment will not be
PRECEDENTS
Term sheet for a bilateral facility for a borrower incorporated as a limited liability company in England and Wales with or without security/a guarantee In relation to a proposed £[•] term loan facility to be provided to [insert name of borrower] by [insert name of lender] (the Parties). Date [•] 20[•] This term sheet is indicative only and is intended as a guide to what will be included in final documentation. It is not an offer to provide the facility. Provision of the facility is subject to satisfactory due diligence, credit committee approval and satisfactory final documentation. The terms in this letter are not exhaustive and [with the exception of []] are subject to contract and not intended to be legally binding on the Parties. 1 Parties Borrower [insert name of borrower] Lender [insert name of lender] [ Parent ] [[insert details of the parent company of the borrower, if a guarantee is being given by the Parent]] [ Guarantor ] [[[the Parent OR insert
PRECEDENTS
[Insert in para 6.1 of response form ET3:] 1 It is [accepted OR denied] that the Claimant has been employed by the Respondent as a [insert claimed job title][ at the Respondent’s premises at [insert address]] since [insert date]. 2 The Respondent denies that it has in any way acted unlawfully towards the Claimant as alleged or at all. [ Relevant contractual terms and policies [Insert response to any contractual terms, policies or practices relied upon by the Claimant. Sample text is provided a paragraphs 3 and 4 below.] 3 It is denied that the Claimant was entitled under the terms of his contract of employment to gym membership. His contractual terms actually provided for optional subsidised gym membership. The Claimant, like any other of the Respondent’s employees who chose to take up the subsidised gym membership, was required to pay a small contribution to the cost of the membership, paid directly
PRECEDENTS
[Insert in para 8.2 of claim form ET1:] 1 The Claimant is woman employed by the Respondent at its establishment at [insert address] as a sales assistant. 2 The following are terms of the Claimant's contract of employment: 2.1 that she was entitled to maternity-related pay for the period of her ordinary maternity leave at the rate of [insert percentage] of her normal pay, her normal pay calculated as at the date she commenced maternity leave; and 2.2 that she was entitled to a bonus of [insert method of calculation of bonus] on sales she had made, such bonus to be calculated and paid [insert details of when payment of bonus due]. 3 The
PRECEDENTS
[Insert in para 6.1 of response form ET3:] 1 It is [accepted OR not accepted OR denied] that the Claimant was employed by the Respondent as a [insert job title, eg ‘service engineer'] from [insert start date of employment] until his dismissal on [insert end date of employment]. It is [accepted OR denied] that the Respondent is [insert brief description of the nature of the Respondent, eg an internet service provider]. 2 The Respondent denies that the Claimant was unfairly dismissed[ and/or wrongfully dismissed], as alleged or at all. Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006) [ Example 1 (Service provision change—response by purported transferee): ] 3 It is admitted that [the [Second] Respondent acquired the contract to provide [insert type of activity] to [insert name of entity for whom activity was carried out] OR the [First]
PRECEDENTS
[ON YOUR LETTERHEAD] WITHOUT PREJUDICE SAVE AS TO COSTS [SUBJECT TO CONTRACT] [Insert date] [Insert name and address of other party’s solicitor] Dear [insert contact name] [Insert subject of letter] We refer to our open letter of [today’s date OR [insert date]]. 1 Our client is confident that, should it issue and pursue proceedings in respect of its claim (as set out in our letter of claim dated [insert date] (the ‘Letter of Claim’), our client would be wholly successful in [insert details of the remedy sought, eg recovering payment of the unpaid invoices plus interest, due to pursuant to the Agreement as set out in our open letter]. [Our client is also of the view that your client’s threatened counterclaim as asserted in your letter dated [insert date] (the ‘Counterclaim Letter’) is wholly without merit.] Nonetheless, our client
PRACTICE NOTES
Environmental rectification work post completion If an environmental report, asbestos survey or disclosures by the seller highlighted non-compliance or capital expenditure requirements, the sale contract can include clauses for the seller or buyer to carry out further investigations and remedial works following completion. Post completion actions can include: • carrying out a new asbestos survey to update an asbestos register or to assess the need for asbestos remedial work • removing or encapsulating asbestos containing materials • making improvements to septic tanks or drainage systems • decommissioning or removing underground storage tanks • fire safety improvement works, and • intrusive ground investigations, gas testing, groundwater monitoring or remediation work See Precedents: Asbestos indemnity and Environmental rectification work clause. Transfer of environmental permits An environmental permit may be required under the Environmental Permitting (England and Waste) Regulations 2016 (EPR 2016), SI 2016/1154 for certain activities including waste operations, manufacturing sites, mining waste, radioactive substances and discharges to surface water or groundwater. Transferring an
PRACTICE NOTES
When is environmental insurance appropriate? Environmental insurance may need to be considered in the following situations: • an environmental report identifies significant concerns regarding land contamination or water pollution • there is stalemate in environmental indemnity negotiations in the sale contract • there are concerns over the covenant strength of the indemnifying party, and/or • insurance is required by funders, tenants or to help the saleability of the site See Practice Note: Environmental insurance—why take out environmental insurance? What type of policy? Public liability (PL) policies offer little or no protection for land contamination or water pollution liabilities. PL policies are restricted to ‘sudden and accidental’ events and there is no cover for: • on-site contamination • licensed discharges • gradual
Q&As
In answering this Q&A, we have focussed on the general position with regards to the entry into simple contracts (not deeds). We have assumed that the company in question is incorporated in England and Wales (and registered under the Companies Act 2006 (CA 2006)) in relation to a document exclusively governed by and subject to the law of that jurisdiction. We assume the company has capacity to enter into the transaction and that it is not ultra vires. For the purposes of this Q&A we have focussed on whether entry into the agreement by the shareholder on behalf of the company is effective to bind the company. We have not considered the position of the shareholder signatory themselves or the third party counterparty. Under CA 2006, s 43, a simple contract may be made by: • a company,
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z M&E Mechanical and electrical. Main contractor On a project where some of the work is sub-contracted, the main contractor (sometimes also referred to as the head or lead contractor) is the party which enters into a contract with the employer and is ultimately responsible for carrying out the works. The main contractor then sub-contracts some or all of the works to its sub-contractors. Maintenance period The period following practical completion during which the contractor is required to return to site to make good any defects which arise or which are discovered during that period. It is similar to 'rectification period' or 'defects liability period', but
NEWS
Commercial analysis: On 3 December 2024, the government launched the Fair Payment Code (FPC). It was announced along with several other measures to tackle the late payment of invoices for smaller businesses and to reward businesses for adopting fair payment practices. Fiona Boswell, partner at Knights plc, looks at the new code and its implications for commercial businesses.