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PRACTICE NOTES
What is the difference between a sub-sale and an assignment? Sub-sale A sub-sale arises where A contracts to sell a property to B but, before completing the purchase from A, B then enters into a separate contract with C to sell the property to C. There are, therefore, two sale contracts in relation to the one property (A-B and B-C). Completion can be effected either by: • a single transfer (A to C, at B’s direction), or • two transfers (A to B and then B to C) Assignment An assignment arises where A contracts to sell a property to B and B then assigns the benefit (but not the burden) of that contract to C. Completion is then effected by a single transfer from A to C. Assignment must be distinguished from a novation. Novation arises where A contracts with B who then ‘transfers’ (or novates) its rights and obligations under the contract to C. The novation requires A’s consent. The result of the novation is that C can be said to 'step into the shoes'
GLOSSARY
Colloquial term for sub-contractor.
PRACTICE NOTES
STOP PRESS: From 1 October 2026, section 48 of the Border Security, Asylum and Immigration Act 2025 (inserting sections 14A and 15A of the Immigration, Asylum and Nationality Act 2006) extends right to work civil penalty liability in certain contractual arrangements, including where a supplier which, having contracted to provide services to a customer, engages a subcontractor to perform all or part of those services. Although the subcontractor remains responsible for carrying out prescribed right to work checks on individuals it employs or engages to perform the subcontracted services, the supplier may be treated as 'employing' any individual who personally performs the services and so may also be held liable for illegal working unless it satisfies the prescribed requirements for establishing a statutory excuse. The extended liability requirements apply to relevant contractual arrangements entered into on or after 1 October 2026. See News Analysis: Extended scope of the right to work regime: how will it work in practice? and LNB News 14/09/2026 18 for further information. This Practice Note will be updated shortly to reflect the changes. This
PRACTICE NOTES
The prime/subcontractor model In order to provide a full range of IT services to their customers, technology service providers may need to appoint other specialist suppliers to supplement their service offering. In this situation, the service provider is often referred to as the prime contractor and any additional suppliers that are appointed by the prime contractor to provide a part of the contracted-for services are known as subcontractors. With a prime/subcontractor model, the prime contractor has contractual, financial and operational responsibility for the provision of the services to the customer under its agreement with the customer (the prime contract) regardless of whether the services are performed by the prime contractor or by a subcontractor. This means that where the act or omission of a subcontractor results in a contract breach and damages result, the customer will be entitled (subject to applicable contract terms) to bring a contractual claim against the prime contractor for the damages suffered by reason of the subcontractor’s default. Because of this, the prime contractor
PRACTICE NOTES
ARCHIVED: This archived Practice Note provides information on the data protection regime before 25 May 2018 and reflects the position under the Data Protection Act 1998 (DPA 1998). This Practice Note is for background information only and is not maintained. Sections 7 and 8 of the DPA 1998 set out a data subject’s right of access to personal data held by a data controller. A request for this information is known as a subject access request (and is also commonly referred to as a ‘SAR’ or ‘DSAR’). The starting point for handling any SAR is to confirm that procedural requirements have been met by the person making the request. For more information, see Practice Note: Subject access requests under the DPA 1998. This Practice Note examines the limited exemptions under DPA 1998 that permit a data controller to withhold personal data from a data subject that has made a data SAR. Such exemptions relate to: • confidential references given by the data controller • publicly available information • crime and taxation • management
PRACTICE NOTES
Sections 7 and 8 of the Data Protection Act 1998 (DPA 1998) set out a data subject’s right of access to personal data held by a data controller. A request for this information is known as a data subject access request (and is also commonly referred to as a ‘SAR’ or ‘DSAR’). This Practice Note examines SARs and discusses issues to consider when responding to them, including any procedural and administrative requirements, time limits for responding and the best practice guidance from the Information Commissioner’s subject access code of practice. A data subject is an individual who is the subject of personal data—they may be of any age or nationality for the purposes of DPA 1998, but to qualify as a data subject the individual must be living. For an explanation of key terms mentioned in this Practice Note, such as personal data, data subject and data controller, see Practice Note: Key definitions under the DPA 1998. Changes as a result of the General Data Protection Regulation The General Data
GLOSSARY
This phrase is routinely added to heads of terms so as to indicate that the parties do not intend that the heads of terms be legally binding.
Q&As
EU judgment In this Q&A we have limited our research to cover the current position under English law; we have not considered the possible position after the UK has left the EU. Current position The rules on jurisdiction and the enforcement of judgments within the EU (including the UK) are currently set out in Regulation (EU) No 1215/2012 (Brussels I Recast) of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I Recast). Brussels I Recast applies only to claims commenced after 10 January 2015 (see art 81). In relation to claims commenced prior to that date, the rules set out in Brussels I continue to apply. The usual position under Brussels I Recast, is that a judgment which falls
NEWS
Restructuring & Insolvency analysis: A director who engages in loading expenses on an insolvent company and dissipates assets with no regard to creditor interests is to be judged on the objective basis rather than a subjective basis. Written by Andrew Mace, barrister at 9 Stone Buildings.
GLOSSARY
A sublease is a lease granted by an existing tenant (the sub‑landlord) out of its own leasehold interest to a sub‑tenant, for all or part of the premises, for a term shorter than the tenant’s own lease. It does not usually create a direct contractual or proprietary relationship between the landlord and the sub‑tenant; the tenant remains liable to the landlord under the headlease and typically retains control over enforcement against the sub‑tenant.In practice, subletting is commonly used for surplus space, group reorganisation or occupational flexibility. Whether a tenant may grant a sublease, and on what terms, is governed primarily by the alienation provisions in the headlease and, in England and Wales and Northern Ireland, by statutory controls such as the Landlord and Tenant Act 1927 and Landlord and Tenant (Covenants) Act 1995. Similar principles apply in Scotland and Ireland, although detailed statutory regimes and terminology (e.g. sub‑tenancy, sub‑underlease) may differ.Key legal issues include landlord’s consent, rent levels, term, rent review structure, compliance with use and alterations covenants, registration and securities over the sublease, and ensuring the sublease is contracted out of, or benefits from, statutory security of tenure where relevant.
PRACTICE NOTES
This Practice Note focuses on the law relating to sub-leases in Scotland and sets out practical issues to be considered from the landlord’s, tenant’s and sub-tenant’s point of view when negotiating and drafting sub-leases, see also: Consent to sublet and irritancy protection agreements—Scotland—checklist. In this Practice Note, the parties are referred to as landlord, tenant and subtenant respectively. A sublease, while granted by a party who is itself a tenant, is governed by the same rules as leases generally. The sublease may be: • of the whole premises under the principal lease, or of only part • for the whole or part of the remainder of the term of the principal lease The tenant must continue to fulfil its obligations under the lease, but these are then usually passed down the line to the subtenant by way of a sublease. This creates a chain of responsibility whereby the subtenant is responsible to the tenant for its obligations under the sublease and the tenant remains responsible for its obligations to
CHECKLISTS
This Checklist contains the key questions that landlords, tenants and subtenants should consider when a tenant is granting a sublease of commercial premises in Scotland to a subtenant, including restrictions on subletting, financial strength of subtenant, form of landlord consent, requirements for landlord consent, form of sublease, and irritancy protection agreements. In this Checklist, the parties are referred to as landlord, principal tenant and subtenant respectively. A sublease, while granted by a party who is itself a tenant (principal tenant), is governed by the same rules as leases generally. The sublease may be: • of the whole premises under the principal lease, or of only part • for the whole or part of the remainder of the term of the principal lease The principal tenant must continue to fulfil its obligations under the head lease, but these are then usually passed down the line to the subtenant by way of a sublease. This creates a chain of responsibility whereby the subtenant is responsible to the principal tenant for its obligations under