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NEWS
Construction analysis: The High Court granted the defendants’ application for a stay of proceedings to allow for expert determination, in a dispute under a contact for the sale of land. The court rejected the claimant’s arguments that the contractual expert determination clause did not apply to the dispute in question, finding that the clause was a ‘one-stop shop’ for all disputes arising under the contract, and that the clause was separable from the underlying contract.
Q&As
UK immigration control—of which the Tier 2 route is a part—is concerned with the regulation of physical presence of individuals within the jurisdiction who require leave but do not have it. In a situation where a migrant outside of the UK is engaging in a contract for service (or employment) with a UK company, in order to work overseas for that company on a contract with a third party, it is not clear why sponsorship would be required. As it states in the Tier 2 and 5: Guidance for Sponsors (paragraph 1.2): ‘ … a migrant must have a sponsor before they can apply to come to, or remain in, the UK for work.’ In a situation where the intention is that the work
Q&As
The starting point is that the benefit of a contract can be assigned to a third party. To this there are a number of immediate exceptions: • first if there is a contract for personal services, then it cannot be assigned. If A contracts to provide services to B, then the benefit of that contract cannot be assigned to C such that A becomes obliged to provide them to C: see, for example Nokes v Doncaster Amalgamated Collieries Ltd • secondly, if there is a covenant in a contract preventing assignment, then any attempt to do so is ineffective: see Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd where the House of Lords held that such a provision is effective thereby drawing a distinction between purely contractual rights and those in land where the common law has always been slow to countenance inalienability Choses in action can be assigned under the Law of Property Act 1925 (LPA 1925)
Q&As
Powers and duties of co-executors The Q&A envisages that the Will has appointed two or more people to be co-executors. The maximum number of executors that can be appointed is four according to section 114 of the Senior Courts Act 1981. Each executor is under a duty to collect and get in the real and personal estate of the deceased and administer it according to the law and the terms of the Will under section 25 of the Administration of Estates Act 1925 (AEA 1925). The duties involved in administering the estate are the same in respect of all the executors no matter how many are appointed. Each executor has a duty to act in the best interests of the beneficiaries and the estate. See generally: Personal
Q&As
We have limited our answer to this Q&A to cover the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 as well as the Consumer Rights Act 2015 (CRA 2015). Article 3(4) of Directive 2011/83/EU (OJ L 304/64), the EU Consumer Rights Directive (EU CRD) introduced a de minimis threshold of up to €50 for the pre-contractual information (and cancellation) requirements for off-premises sales. Article 7(4) introduced a de minimis threshold of up to €200 for all the pre-contractual information requirements for off-premises sales in the case of essential repairs and maintenance. Note that the criterion considered below for off-premises contracts does not overrule this de minimis threshold. See Practice Note: The EU Consumer Rights Directive for more information. Business premises One consideration is whether the convention could constitute a premises. The EU CRD provides at recital (21) that off-premises includes: ‘a place which is not the business premises of the trader’. Article 2(9) of the EU CRD states: ‘business premises’ means: (a)
NEWS
Property Disputes analysis: In an important case determining the extent of clogs and fetters to the equitable right to redemption, the court demonstrated that it did have jurisdiction to award an injunction preventing completion of a contract for sale entered into on behalf of the mortgagor by receivers. This decision validates the position that, unlike where a mortgagee exercises a power of sale, when a receiver enters into a contract for sale the mortgagor’s equity of redemption is neither lost, nor necessarily suspended. Written by Hugh Rowan, barrister at Tanfield Chambers.
PRECEDENTS
date [date] Parties 1 [name of Seller] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] [and whose address for service in England and Wales is [address]] (Seller) 2 [name of Buyer] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] [and whose address for service in England and Wales is [address]] (Buyer) 3 [[name of Guarantor] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] [and whose address for service in England and Wales is [address]] Guarantor)] 1 Definitions In this Agreement, the following definitions apply: Actual Completion Date • the date on which the Transfer is actually completed; [Arrears • the amounts (including VAT for which the Seller must account to HMRC) due to the Seller from the Tenant[s] up to and including the Actual Completion Date, but which have not been received by the Seller or its agents in cleared funds before that date;] Buyer’s Solicitors • [name] of [address] (reference [details]); [Chattels • for each Property, any items listed under the heading ‘Chattels’
NEWS
Ireland—Dispute Resolution analysis: This article, was written by Cahal Carvill and Darren Fitzsimons of Arthur Cox LLP. A review of the High Court’s decision in Jaevee Homes Limited v Fincham.
Q&As
This Q&A considers a business-to-business arrangement. For the purposes of this Q&A we have focused on the manner in which a third party guarantor can become contractually bound, and the interpretation of the contractual terms to which it is bound. In order for a binding obligation to be placed upon a third party guarantor, that binding obligation will need to be created either by way of contract or by way of deed. In the scenario described, a contractual guarantee obligation will require 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. Valuable consideration has
Q&As
Firstly, should consider the authority of each of the partners comprising the partnership. A partner in a partnership will usually be empowered by virtue of the partnership agreement to contract and act on behalf of the partnership. On the assumption that an individual partner has the requisite authority to act, then its actions will bind the partnership and the other partners. Always check the partnership agreement to ensure that a partner is acting within its’ authority. Contracts, particularly significant contracts, would habitually be executed
Q&As
Failure to complete contract for the sale of land Time is generally not of the essence for completion of a contract for the sale of land. If the seller or the buyer delays completion, the defaulting party will be liable in damages (and for compensation under the Standard Conditions) but cannot rescind until time is made of the essence of the contract. It is for the party who is ready, willing and able to complete to make time of the essence by serving a notice to complete. If a valid notice to complete has been served and completion does not take place by the deadline (usually ten working days after the notice is given, excluding the day on which the notice was given) the defaulting party's breach can be accepted and the contract rescinded. Specific performance may be available where
Q&As
Before probate, executors are able to do all things that pertain to the executorial office. This includes making a conveyance or assignment of realty. It should be noted that as the only evidence of their title is the grant, they will be unable to proceed beyond the stage at which it becomes necessary to prove their title. However, we are not aware of any reason why contracts cannot be exchanged so long as they are conditional on probate being granted to the executors/sellers. Such a contract