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PRACTICE NOTES
Scope of Practice Note This Practice Note on drafting a notice of breach of contract identifies the key instances for when a breach notice may be appropriate to serve and sets out the context behind the drafting of our bespoke notice of breach Precedents. Many commercial contracts include provision for a party in default to be given notice of their breach. This is usually part of a termination clause and may be required in order for a party to remedy the default and/or as a precursor to giving notice of termination for breach in accordance with a contractual right of termination. Note, however, not all breaches of contract give rise to a right to terminate the agreement or require a notice to remedy and may instead limit the innocent party to claiming a remedy of damages only. In such a case the notice may be served to put the defaulting party on notice that the innocent party seeks remedy of the default, in the absence of which, damages will be sought. For further
Q&As
In practice, where conditionality clauses have been drafted in favour of the buyer and such conditionality is to be 'at the buyer’s absolute discretion', then a test of reasonableness is unlikely to be implied into the contract. In the case of planning conditionality, a seller often requires the contract to have a definition of 'Onerous Conditions' to objectively assess whether a planning permission is satisfactory or not. For example, by reference to levels of housing density, net floor space
PRACTICE NOTES
This Practice Note is part of our LLB Contract Law series written specifically for law students. It provides a structured analysis of statutory implied terms under the Sale of Goods Act 1979 (SGA 1979). It explains the rationale and operation of statutory implication in business-to-business contracts, with detailed treatment of the key implied terms relating to title (SGA 1979, s 12), description (SGA 1979, s 13), satisfactory quality (SGA 1979, s 14(2)), fitness for purpose (SGA 1979, s 14(3)) and sale by sample (SGA 1979, s 15). This Practice Note integrates leading case law to illustrate how these provisions operate in practice, explores limitations and exceptions (including SGA 1979, s 15A and reliance requirements) and situates SGA 1979 within its broader policy, academic and comparative context, with reference to the Consumer Rights Act 2015 (CRA 2015) and civil law approaches. The nature and function of statutory implied terms In English contract law, terms may be express or implied.   While express terms reflect the parties’ actual agreement, implied terms are inserted by law to give effect to presumed intentions,
Q&As
Where there is no mention of applicable law in the contract, in the event of a dispute, the court will have to consider which law will apply. To do this, it will apply the provisions in Retained Regulation (EC) 593/2008, Rome I. Article 22(1) of Retained Regulation (EC) 593/2008, Rome I sets out
Q&As
Effective service of the referral notice and other documents is essential for any party wishing to pursue adjudication as a means to resolve a dispute. If this issue is left uncertain, it is likely that a responding party would use it to challenge enforceability of the award upon enforcement. Section 115 of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) provides that the parties are free to agree in their contract the manner of service of ‘any notice or other document required or authorised to be served in pursuance of the construction contract or for any of
Q&As
In answering this Q&A, we have assumed you are referring to a business-to-business commercial contract subject to the governing law of England & Wales and in respect of which no specific industry or sector regulations apply. In formulating our reply, we have highlighted guidance on some of the key considerations in respect of drafting duration and termination clauses (which may include leaving the contract silent on the issue). Such considerations include (but may not be limited to): Term and duration clause Whether an agreement is of indefinite duration (either because it expressly provides that this is the case, or because it is silent on the issue) depends on its terms. How the parties agree to structure the agreement is a matter for the parties themselves and will be interpreted by reference to the parties’ intentions at the time as well as the usual principles of common law interpretation. For more on this, see Practice Notes: Structure
Q&As
Assignment of contracts An ‘assignment’ is an immediate transfer of an existing proprietary right, vested or contingent from one party to another. Assignments can be effected either: • by consent—either by way of gift or for consideration, or • by operation of law—when they can occur during life or on death. An assignment by operation of law: ◦ will transfer the benefit of rights to the assignee ◦ but will not make the assignee personally liable Whether consent is required will depend on the terms of the contract. For example, a contract may contain an express provision permitting the assignment of rights. Such a provision can include rights that would otherwise be personal and not assignable. Where a contract expressly permits the assignment of rights under it, it may also provide conditions for effecting that assignment. Assignment provisions are interpreted
Q&As
Cancellation Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, a consumer has the right to cancel a distance or off-premises contract within the cancellation period without giving any reason or incurring liability, subject to certain exceptions. The cancellation period generally lasts 14 days from the date of delivery of the goods or the conclusion of the contract, depending on the type of contract. This right applies regardless of the consumer's financial means or ability to pay for the goods, as the Regulations do not impose a requirement for the consumer to demonstrate financial capability to exercise the right to cancel. For more information, see Practice Note: Distance, doorstep and on-premises sales. See also: Consumer cancellation rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013—Goods—Flowchart. Right of redress In the alternative, a consumer who has entered into a contract for goods and has been subjected to aggressive sales tactics
Q&As
We do not have a precedent contract in Lexis®PSL Construction that would suit these purposes. We suggest that an appropriate form of contract to use in these circumstances
PRACTICE NOTES
This Practice Note considers why a third party may wish to rely on a contract to which it is not privy, and whether the common law doctrine of privity contract may be avoided by recognising instead a collateral agreement, a multipartite contract, or an agency scenario on the given facts. It also considers when a third party can make a claim under an insurance contract or consumer legislation. Why consider the effects of contracts on third parties? Although your client is not a party to the contract in question, you may still want to know whether they may be: • liable for any obligations, or • entitled to enforce any benefits under the contract. Consider the following scenarios: • in a contract between A (promisor) and B (promisee), A agrees to pay €1,000 to C (third party) • in a contract between A (promisor) and B (promisee), A agrees that any liability in respect of C (third party) should be limited to €5,000 In both examples, there is a benefit to C (payment
Q&As
The Practice Note: Sponsoring a Skilled Worker sets out in detail how salary fits into the eligibility criteria for the Skilled Worker route, but note that there are three thresholds that generally need to be met in whole or part: the relevant general threshold (expressed as an annual amount), the going rate for the role and the hourly rate. These are each calculated in accordance with the Rules and guidance, see the section ‘How is salary calculated’, and the relevant Immigration Rules, which are extracted below. The reference to weekly hours stated by the sponsor is explained
Q&As
The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (FTE Regulations 2002), SI 2002/2034 provide that, unless the employer can objectively justify the continued use of fixed term contracts, where a fixed term employee has been continuously employed either under a single fixed term contract or a series of fixed term contracts for four years or more and is then re-engaged on a further fixed term contract without continuity of employment being broken, the new contract will have effect as a permanent contract. For information about fixed-term employees, generally, see Practice Note: Fixed-term employees. The FTE Regulations 2002 contain a