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Q&As
‘Occupier’ Party Wall etc Act 1996 (PWA 1996) s 20 sets out as follows: ‘“adjoining owner” and “adjoining occupier” respectively mean any owner and any occupier of land, buildings, storeys or rooms adjoining those of the building owner and for the purposes only of section 6 within the distances specified in that section’ PWA 1996, ss 8(3) sets out as follows: ‘(3)No land or premises may be entered by any person under subsection (1) unless the building owner serves on the owner and the occupier of the land
NEWS
Arbitration analysis: The Court of Appeal upheld the High Court’s finding that Libya’s agreement in a Swiss-law governed contract, that an arbitral award would be ‘final, binding and wholly enforceable’, constituted written consent for the purposes of section 13(3) of the State Immunity Act 1978 (SIA 1978). This waiver of execution immunity allowed an interim charging order against Libya’s property in London to be made final. The decision re-affirms the importance of contractual wording in arbitration agreements involving state entities and provides guidance on the construction of state immunity waivers under English law. Written by Brandon Malone, advocate, barrister and arbitrator at Ampersand Advocates.
Q&As
Section 142 of the Inheritance Tax Act 1984 (IHTA 1984) provides a special treatment for inheritance tax purposes where a legatee under a Will gives away all or a part of his or her legacy. In those circumstances, so long as the conditions in IHTA 1984, s 142 are met, the Will is treated as having made a legacy or an increased legacy (as the case may be) to the recipient of the gift and is treated as making a reduced legacy of a corresponding amount to the original legatee. IHTA 1984, s 142(1) is set out below: ‘(1) Where within the period of two years after a person's death (a) any of the dispositions (whether effected by will, under the law relating to intestacy or otherwise) of the property comprised in his estate immediately before his death
NEWS
Local Government analysis: Deputy High Court Judge Roger Ter Haar KC decided that the defendant local housing authority was not in breach of its duties at Part 6 of the Housing Act 1996 (HA 1996) (allocation of social housing) or HA 1996, Pt 7 (homelessness) when it had failed to make a direct offer of alternative accommodation to the claimant, who is a secure tenant of the defendant. He also decided that the defendant’s email indicating that it would search for and offer suitable accommodation to the claimant was clear and unambiguous, but was not devoid of relevant qualification, as any offer depended upon the identification of suitable alternative accommodation. As a result, a legitimate expectation had not arisen. He finally concluded that, even if the claim had not been dismissed, the defendant’s new Grenfell Settled Homes Policy, adopted after the claim had been issued, provided an alternative remedy for the claimant. The claimant’s claim for judicial review was dismissed. Written by Liz Davies KC, and Tim Baldwin, barristers at Garden Court Chambers and counsel for the claimant.
Q&As
In conducting our research we have focussed only on the sufficiency of consideration in forming a legally binding contract. We assume the other elements necessary to form a legally binding contract are in place. Consideration is an essential ingredient for an enforceable legal contract. See Practice Note: Forming enforceable contracts—consideration. Consideration can be in the form of money or money’s worth or may be satisfied by the exchange of mutual obligations between the parties. Any practicalities or logistics concerning the payment of consideration or performance of consideration should be detailed
Q&As
Case study In a HMO, the tenancy agreement has not been signed by either the landlord or the tenant, but the tenant has paid a deposit and the first month’s rent, signed a rent deposit receipt referring to the terms of the tenancy agreement and accepted the keys before the term start date, but has not taken possession as the landlord has not provided locks for the bedroom doors. Has a lease been created? The first line of enquiry is to determine the nature of the intended letting—see Practice Note: A summary of types of private residential tenancies. In this scenario, the intended lease would more than likely be either an assured shorthold tenancy (AST) or a common law tenancy. A tenancy will not be an AST unless it complies with the criteria set down in Section 1(1) of the Housing Act 1988 (HA 1988), which are as follows: • the tenant must be an individual • the property must be occupied as the tenant's only or principal
PRACTICE NOTES
Section 6 of the Company Directors Disqualification Act 1986 Section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) provides that the court shall make a disqualification order against a person where, on an application made under that section, it is satisfied: • that they are or have been a director of a company which has at any time become insolvent, or at any time has been dissolved without becoming insolvent (whether while they were a director or subsequently), and • that their conduct as a director of that company (either taken alone or taken together with one or more other companies or overseas companies) makes them unfit to be concerned in the management of a company For these purposes, a company becomes insolvent if: • the company goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up: • the company enters administration, or • an administrative receiver
NEWS
Restructuring & Insolvency analysis: This case involved an application by the joint administrators of the company pursuant to paragraph 63 of Schedule B1 to the Insolvency Act 1986 (IA 1986) and provides helpful guidance on the extent to which IA 1986, s 245 applies to invalidate security under a floating charge. IA 1986, s 245 provides that any floating charge created within a specified period of the onset of insolvency (namely two years if the beneficiary of the charge is connected) is void except to the extent that the charge holder advanced value at the same time as, or after, the creation of the charge. The court, having regard to what consideration was given at the time or after its creation, held that the charge was validly created security, and it was effective against the joint administrators. On the key issue of consideration, the court found the case of In Re Peak Hotels and Resorts Ltd (in liquidation) was attractive as it assisted with the definition of ‘goods’ it being held to mean ‘forms of benefit to the company which arise from day-to-day trading and finance and have a readily ascertainable value’. Written by Peter Worrall, associate solicitor at Charles Russell Speechlys.
Q&As
Who is the ‘landlord’ for the purposes of s 42? We refer you to Practice Note: Guide to lease extensions of flats under the Leasehold Reform, Housing and Urban Development Act 1993, which outlines that the ‘landlord' (otherwise referred to as 'the competent landlord') in relation to the lease held by a qualifying tenant of a flat, means the person who is the owner of that interest in the flat which for the time being fulfils the following conditions, namely: • it is an interest in reversion expectant, whether immediately or not, on the termination of the tenant's lease, and • it is either a freehold interest or a leasehold interest whose duration is such as to enable that person to grant a new lease of that flat The landlord is not itself expectant, whether immediately or not, on an interest which fulfils those conditions (see section 40 of Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993)). Where the immediate landlord under the lease
Q&As
This obligation derives from the SRA COB Rules, r 12.4: ‘where you have given a personal recommendation to the client, you must, in addition to the statement of the demands and needs, provide the client with a personalised explanation of why a particular contract of insurance would best meet the client's demands and needs’. This obligation reflects the underlying Insurance Distribution Directive (IDD), albeit the terminology is slightly different. Information to be provided under the IDD/COB Rules (including the personalised explanation), must be communicated to the client: • on paper, via a durable medium or on a website • in a clear and accurate manner, comprehensible to the customer • in an official language of the Member State in which the insured
Q&As
‘Conveyancing’ is not a term used to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692. The MLR 2017, SI 2017/692 apply to: • credit institutions • financial institutions • auditors, insolvency practitioners, external accountants and tax advisers • independent legal professionals • trust or company service providers • estate agents and letting agents • high value dealers • casinos • art market participants • cryptoasset exchange providers, and • custodian wallet providers The definition of ‘independent legal professional’ contained in the MLR 2017 covers a firm or sole practitioner who by way of business provides legal or notarial services to other persons, when participating in financial or real property transactions concerning the: • buying and selling of real property or business entities • managing of client money, securities or other assets • opening or management of bank, savings or securities accounts
Q&As
What constitutes ‘deemed’ service in relation to Tenancy Deposit Scheme documents? We are not aware of any statutory provision within the ss 212–215C, Sch 10 of the Housing Act 2004 (HA 2004), which deals with service of notices the TDS scheme , other than Sch 10, para 10A which explains that: 'A tenancy deposit scheme may make provision as to the methods which may be used for giving or sending any direction, notice or other document which falls to be given or sent under the scheme.' Therefore, taking this into account, any TDS scheme documents should be reviewed for any provisions regarding service of those documents. We are also not aware of any relevant provisions as to service of notices within Part I to the Housing Act 1988 (HA 1988), which governs the tenancies which the TDS relates to. We therefore refer you to see Practice Note: Break clauses and notices—service. Although this Practice Note primarily relates to serving