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Q&As
Before determining which box should be ticked in form N510, you must first determine the basis upon which the English courts have jurisdiction to hear the claim. The question does not provide sufficient information to determine this and so we set out the possible options for each country and so different scenarios have been provided for each jurisdiction below. For guidance: • on completing Form N510 and the consequences of getting it wrong, see Practice Note: Cross-border service—Form N510 • on determining whether permission is required, see Practice Note: Cross-border service—is permission required to serve a defendant who is outside England and Wales? Defendant registered in Luxembourg If the claim relates to a consumer or employment contract within the meaning of section 15 of the Civil Jurisdiction and Judgments Act 1982 (CJA 1982), the box that should be ticked is the first box under Part 2, headed ‘In
Q&As
Is the answer affected if the seller is a director of the company that was sold is on an earn out? In conducting our research we have focussed on misrepresentation and mistake when entering into contracts. It may be worth considering what, if any, representations and/or warranties may have been given as between the parties that may be provided for in the share sale documentation (although usually these would be the representations and warranties given by the seller, rather than the buyer). See Practice Notes: Warranties and indemnities—share purchase and Representations—share and asset purchases. Where a party considers that they have been induced to enter into a contract on the basis of a misrepresentation then it may be that they can pursue a claim in misrepresentation. Our subtopic: Actionable misrepresentation and negligent misstatement contains Practice Notes identifying what a claim in misrepresentation is and its comparison with other similar types of claim
PRACTICE NOTES
This Practice Note covers: • the nature of disclaimer • what can be disclaimed • the process of disclaimer, and • restrictions on disclaimer The nature of disclaimer Disclaimer is a statutory procedure which is governed by the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024: • in the case of liquidation, the relevant provisions are found in IA 1986, ss 178–182 and IR 2016, SI 2016/1024, rr 19.1–19.11 • in the case of bankruptcy, the relevant provisions are found in IA 1986, ss 315–321 and IR 2016, SI 2016/1024, rr 19.1–19.11 What can be disclaimed? Both liquidators and trustees in bankruptcy (trustees) may, by giving the prescribed notice, disclaim any onerous property and may do so notwithstanding that they have taken possession of it, endeavoured to sell it or otherwise exercised rights of ownership in relation to it. Onerous property is defined as: • any unprofitable contract • any
Q&As
CPR 6.11—contractually agreed methods of service Where there is a contractual agreement on the method of service to be used for service of a claim that arises in respect of that contract, CPR 6.11 permits service of the claim form via that method as valid. The rule allows parties to agree methods of service that are wider than those permitted by the CPR. For guidance, see Practice Note: Service of the claim form by a contractually agreed method (CPR 6.11). CPR 6.7—service on a solicitor The claim form must be served at the business address of the defendant’s solicitor where either: • the defendant has notified in writing that they may be served with
Q&As
Joint and several liability Joint and several liability arises where two or more persons under the same contract make a promise to the same person, and at the same time each of them individually makes the same promise to that same person. Where two or more persons make joint and several promises to another, each of the promisors incurs both a joint and a several liability. This means that all or any of the promisors may be sued, at the option of the promisee, in respect of a joint and several liability, and separate actions may be brought against each. See Practice Note: Joint, several, and joint and several liability. The conditions to make someone bankrupt Where debt is owed on a joint and several basis, for a creditor to serve a statutory
Q&As
It is assumed husband (H) and wife (W) left their estates to each other, and, thereafter to A. On W’s death, her estate passed to H, and the issue here concerns the extent to which H is now bound by his continuing testamentary bequest to A. It is also assumed that H and W did actually make valid mutual Wills (as opposed to individual mirror Wills), namely that they created a legally binding contract between themselves to the effect that, in return for W agreeing to make a Will in the form that she did and not to revoke it without notice to H, then H made his Will in the form he did, agreeing not to revoke it without
PRACTICE NOTES
Finance Act 2025 (FA 2025) marked a significant shift in the UK tax regime by abolishing the remittance basis of taxation and replacing it with a regime which broadly exempts an individual’s non-UK income and capital gains from UK tax for the first four years of residence in the UK, informally known as the ‘foreign income and gains’ (FIG) regime. See Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and Foreign income and gains regime from 6 April 2025. Overseas workday relief, which applied to individuals in their first three years of UK residence who carried out duties of employment both in the UK and overseas under a single contract of employment, ceased on 5 April 2025 and was replaced with a similar relief called relief for foreign
Q&As
A qualifying tenant who has been the registered owner of a flat for two years may extend their lease pursuant to the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). This process begins with the service of a section 42 notice, which is registerable under the Land Registration Act 2002 as if it were an estate contract. See Practice Note: Guide to lease extensions of flats under the Leasehold Reform, Housing and Urban Development Act 1993. Where a tenant has served two section 42 notices, presumably the second has been served without prejudice to the validity of the first. If in fact the first section 42 notice is considered a valid notice, then the second notice will accordingly not itself be a valid
Q&As
This Q&A has assumed that the right of way has not been confirmed in a contract or Deed and there are no express terms allowing for the way to be diverted or moved; this answer addresses private rights of way and not public rights of way A right of way does not give exclusive use of the land over which it relates; any diversion by the servient owners will only give rise to liability if it prevents the right of way from being substantially and conveniently exercised as before. A few definitions first. For every easement including a right of way there is a 'dominant' owner of land (whose land has the benefit of the right). There is a different owner of 'servient' land, over which the right held by the dominant landowner is exercised. The easement binds successors in title of the 'servient' land. To obtain a right of way by prescription, there must be continuous
Q&As
What happened on 21 March 2016? Before 21 March 2016, a credit agreement that was secured on land by a second or later charge could not be a regulated mortgage contract because of its definition in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the RAO), SI 2001/544, art 61. The UK Mortgage Credit Directives (MCDs) scope led to most regulated credit agreements secured by a second or later charge entered into before 21 March 2016 being transferred into Mortgage Code of Business Regulations. This transfer resulted from the introduction of the Mortgage Credit Directive Order 2015, SI 2015/910 (the MCDO). What did the Financial Conduct Authority say about time orders before 21 March 2016? In Consultation Paper 14/20,
Q&As
In answering this Q&A, we have assumed that the landlord’s consent was required for the extension, the notice of change of ownership was served after the extension was built and the landlord had knowledge of the existence of the extension. It is necessary to determine whether or not a waiver of the contractual right to sue for breach of covenant has occurred. In the event that a waiver of the right to sue for the breach of covenant cannot be said to have occurred, it will follow that the landlord will remain able to sue for the breach of covenant. Waiver In general terms a waiver of a contractual right can occur in one of three ways: • by deed or by contract • by election. Some contractual
Q&As
Agency Workers Regulations 2010 A tripartite relationship is formed where an agency worker has a contract with a temporary work agency but works temporarily for and under the direction and supervision of a third-party hirer. The agency places the agency worker on assignment with a hirer or ‘end user’, which employs them temporarily, while paying the agency a fee. The agency then in turn remunerates the agency worker. That unique relationship is key to who is covered by the Agency Workers Regulations 2010 (AWR 2010), SI 2020/93. Whether a particular arrangement falls within the scope of AWR 2010, SI 2020/93 will depend on how the relationship between the parties works in practice. For further information generally, see Practice Note: Rights under the Agency Workers Regulations