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PRACTICE NOTES
What is subrogation? Subrogation is an equitable mechanism aimed at preventing unjust enrichment by permitting one party to ‘step into the shoes’ of another and to bring an action in that other’s name. For further guidance on unjust enrichment generally, see Practice Notes: • Unjust enrichment—elements of the claim • Unjust enrichment—defences When might subrogation arise? The term subrogation is: ‘…a convenient way of describing a transfer of rights from one person to another, without assignment or assent of the person from whom the rights are transferred and which takes place by operation of law in a whole variety of widely different circumstances. Some rights by subrogation are contractual in their origin, as in the case of contracts of insurance. Others, such as the right of an innocent lender to recover from a company moneys borrowed ultra vires to the extent that these have been expended on discharging the company's lawful debts, are in no way based on contract and appear to defeat classification except as an empirical remedy to prevent a particular kind of unjust
PRACTICE NOTES
This Practice Note sets out guidance on how to settle an IP dispute. It includes the reasons for settling an IP dispute, when to consider settlement and the available forms of settlement. It considers the format of the negotiations and the key terms to include in a settlement agreement, along with practical points for the parties. Why settle? A ‘settlement’ generally refers to a situation where the parties to a dispute agree to end it and enter into an agreement (often in the form of a formal contract) setting out the terms that have been agreed. Settlement may take place prior to the commencement of litigation or in the course of court proceedings. While there may be occasions when tactically it makes sense to litigate, it is generally best avoided. IP proceedings are no exception. No matter how strong a right holder’s case might be, the outcome of litigation is always uncertain, and the process can be costly, time consuming and stressful. The remedies available to the courts are limited and may not always offer the
PRACTICE NOTES
The best known of the Chinese arbitral institutions is the China International Economic Trade Arbitration Commission (CIETAC) which was formed in 1954 to support China’s growing trade and economic relations with other countries and survived the cultural revolution. CIETAC is now one of the world’s leading commercial arbitration centres handling a very substantial caseload. Chinese parties favour arbitration as the means for resolving commercial disputes, particularly those arising from international commercial transactions. With China’s current extensive outbound investment, Chinese parties are involved in international arbitration in all of the world’s leading centres. Wherever possible, however, Chinese parties prefer arbitration in their own country so foreign parties need to know what to expect if faced with an arbitration before a tribunal in China. An introduction to arbitration in China Two important features of arbitration in China derive from its historical development. The first relates to the distinction between domestic and international cases. Following the enactment of the Economic Contract Law in 1981, a number of arbitration commissions were created for the resolution
PRACTICE NOTES
Background The Occupiers’ Liability Act 1957 (OLA 1957) was enacted to provide for a ‘common duty of care’ owed by occupiers of premises. The duty is ‘common’ in that it is owed to various categories of lawful or authorised visitors such as invitees, licensees and those whose right to be on the premises arises from a contract. OLA 1957 was introduced to replace the rules of the common law to regulate the duty owed by an occupier of premises to their visitors. The common duty of care is not owed to trespassers who may have rights arising from the Occupiers’ Liability Act 1984 (OLA 1984). For further guidance on the duty owed by an occupier to unauthorised visitors, see Practice Note: Unauthorised visitors under the Occupiers’ Liability Act 1984—the duty of care. The duty of care An occupier of premises is under a duty to their lawful visitors to take such care as in all the circumstances of the case is reasonable to see that the visitor will be reasonably safe when using the premises for
PRACTICE NOTES
Structure of an Ijarah transaction Key features • this is the equivalent of leasing in an Islamic finance structure and is a contract under which the owner (lessor) purchases an asset and then transfers the right to use and derive profit from that asset, known as the usufruct, to another person (the lessee) for an agreed period of time and an agreed consideration • the Islamic Financial Institution (IFI)/lessor will purchase an asset at the request of the Customer/lessee and must retain title to the leased property for the duration of the lease. This asset must be of a non-consumable nature and not one prohibited under Shari'ah and it is important that the lessor carries out the necessary due diligence to confirm this • the agreement usually provides the lessee with an option to purchase the asset at the end of the lease period for a nominal amount • the lessor and lessee enter into a lease agreement under which the lessee pays rent. This rent is made up of a payment
PRACTICE NOTES
FORTHCOMING CHANGE : On 13 October 2025, the Ministry of Housing, Communities and Local Government (MHCLG) launched a consultation on proposed improvements to the Local Government Pension Scheme (LGPS) in England and Wales. Among other things, the consultation proposes a major overhaul of Fair Deal protections, aligning the scheme with the 2013 Fair Deal guidance and ending the use of admission body agreements (as well as ‘broadly comparable’ pension schemes) for future outsourcing, save in certain exceptional circumstances. Instead, all staff compulsorily transferred under TUPE would retain continuous LGPS membership through a new default ‘deemed employer’ model, ensuring the original Fair Deal employer remains responsible for pensions rather than relying on admission bodies. These protections would extend across re-tenders and subsequent transfers, safeguarding access for ‘protected transferees’ and, at the employer’s discretion, for new joiners on the contract. Draft regulations to implement these Fair Deal changes were published alongside the consultation, signalling the government’s intention to strengthen long-term pension security for outsourced local government workers. For further information, see Practice Note: Local
PRACTICE NOTES
This Practice Note introduces common types of performance bonds used in international supply contracts such as pre-qualification bonds, tender (or bid bonds), advance payment bonds (APB), maintenance bonds, completion bonds, retention bonds and facility bonds. Performance bonds are used on many projects in order to provide security to the customer against the supplier's non-performance. This Practice Note also considers how trade sanctions, export controls and embargoes may affect the performance of contractual obligations in international contracts for which a bond may be required. This Practice Note does not consider letters of credit which are most commonly used in international supply contracts to provide a secure method of payment under the sales contract between the buyer and seller as protection for the supplier against the creditworthiness of the buyer. For guidance on letters of credit, see: Letters of credit—overview and Practice Note: Characteristics of commercial letters of credit. This Practice Note also does not consider parent company guarantees—where the parent company to the supplier guarantees the performance of its subsidiary supplier’s obligations to the customer under
PRECEDENTS
This COMPROMISE Agreement (Agreement) is made on [insert date] between 1 [Employer Name] with its registered address at [address](the Company); 2 [Employee Name], [address](the Employee). WHEREAS: The Employee has been employed by the Company since [date] under a contract of employment dated [date]. Insert brief reason as to the reason for termination of employment, for example, ‘by mutual agreement’ or ‘by reason of redundancy’. This clause will need to be amended in the event that the termination date is in the past. It has been agreed by the parties that the Employee’s employment will terminate by [mutual agreement OR redundancy] on [date](the Termination Date); Where claims or proceedings have been filed, these should be clearly identified by their record number and included in the definition of ‘Claim’ or ‘Proceedings’ as necessary. The Employee has submitted a complaint before the Workplace Relations Commission under the [insert Act(s)] (bearing reference number: [insert] (the ‘Complaint’). AND/OR The Employee has initiated a claim before the Personal Injuries Resolution Board with reference: [insert] (the ‘Personal Injuries Claim’). AND/OR The Employee has issued proceedings before the [District Court/Circuit Court/High
PRACTICE NOTES
Introduction This Practice Note is part of our student series, aimed specifically at students undertaking their LLB. It examines intention to create legal relations, a requirement that must be satisfied before an agreement will be treated as a binding contract. This Practice Note deals with intention to create legal relations. It explains that the test is objective, as Smith v Hughes establishes, and considers how the courts assess whether a reasonable person would regard an arrangement as legally binding, using Bowerman v Association of British Travel Agents Ltd as the leading illustration. It then works through the three presumptions the courts apply—that domestic and social agreements are not intended to be binding, and that commercial agreements are—together with the circumstances in which each is rebutted. Balfour v Balfour and Merritt v Merritt remain the clearest demonstration of how a presumption operates in practice. A case table and dedicated exam and problem question guidance follow. The requirement Intention to create legal relations means that the parties objectively intended their agreement to give rise to legally enforceable rights
PRACTICE NOTES
When providing finance for any development or construction project, the lender (or funder) and its advisers will use various methods to protect the lender’s position. The aim of these protections is to ensure, at the very least, that the lender is able to recover any finance it provides if the borrower (or developer) becomes insolvent or the project runs into difficulties. One of the key documents in a development financing is the contract between the lender and the borrower (‘the facility agreement’). This will include various detailed provisions relating to the development. For more information on the key construction issues to be dealt with in facility agreements, see Practice Note: Facility agreements—construction provisions. Another important aspect of a development financing involves the lender’s lawyers reviewing the construction documents prepared by the borrower and its lawyers to ensure that they are properly drafted and provide appropriate rights for the borrower and any interested third parties if they need to commence an action against any of the construction or professional team. In addition to ensuring that
PRACTICE NOTES
What is sectional completion? Where the construction contract splits the works into sections or parts, usually to be started at different times, there will be multiple completion dates set by the employer in respect of those different parts of the works. This is known as sectional completion. Advantages and disadvantages of sectional completion Sectional completion is to the employer’s advantage in that it allows it to use parts of the development earlier than it could if it had to wait for the whole development to be completed, because in that case, the contractor would continue to have possession of and occupy the whole site until all the works were completed. For example, in a residential development, this would mean that the employer can begin showing and selling the units as they are completed, rather than having to wait for the whole development to be finished. Sectional completion can therefore allow the employer to begin recouping some of its build costs earlier. Sectional completion can also be useful in a refurbishment project, because it can allow occupiers to be decanted
PRECEDENTS
Date provision Replace the share purchase agreement (SPA) date provision with the following new date provision: This Agreement is delivered on [insert day and month] 20[insert year] Recitals Recital (B) Delete ‘legal and beneficial’ from Recital (B). Definitions Amend the following existing definitions set out in clause 1 (Definitions and interpretation) of the relevant precedent SPA (where used in the SPA): Definition of ‘Business’ Replace ‘the City of London’ with ‘[Edinburgh OR Glasgow OR Aberdeen]’ Definition of ‘CRTP’ Replace the definition of ‘CRTP’ with the following new definition: CTPRS • means Contract (Third Party Rights) (Scotland) Act 2017; Definition of ‘Encumbrance’ • Delete ‘assignment’ immediately preceding ‘right of first refusal’ as Scots law refers to assignation rather than assignment. • Delete ‘legal or equitable’ immediately preceding ‘third party right’ as Scots law does not recognise this separation of ownership. Definition of ‘Freehold Properties’ Delete the definition of ‘Freehold Properties’ and insert the following new definition in the appropriate alphabetical order: Heritable Properties • means the heritable properties of the [Company OR Group], further details