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It should be noted that different considerations apply if a long leasehold interest is being sold. The issue in this Q&A is that if on the sale to the purchaser the seller retains no land, how can the seller protect the restrictive covenant so as to be able to enforce it against successors in title to the purchaser? Transmission of burden of restrictive covenant At common law, the burden of a restrictive covenant cannot run (ie so as to bind successive owners or occupiers) with freehold land in any circumstances. However, in some circumstances, the burden of a covenant may be enforced against a successor in title to the original covenantor in equity. The requirements are that:
Q&As
It is not a condition regulating settlement agreements that the employer must give any consideration for the employee’s waiver of their claims (see, eg section 203 of Employment Rights Act 1996). For further information, see the section of Practice Note: Settlement agreements in employment—legal requirements entitled ‘Conditions regulating settlement agreements’. However,
Q&As
For information on: • the legal requirements that must be met for a settlement agreement to be binding and valid to settle statutory employment claims, see Practice Note: Settlement agreements in employment—legal requirements • the practical issues that typically arise in relation to a settlement agreement, see Practice Note: Settlement agreements in employment—practical and tax issues Contribution to legal costs A settlement agreement will typically provide for the employer to make a contribution to the employee’s legal costs. For general information on payment of legal fees incurred by an employee in relation to a settlement agreement generally, see the section of Practice Note: Settlement agreements in employment—practical and tax issues entitled ‘Payment for legal advice’. For a sample clause in the settlement agreement dealing with payment of legal
Q&As
When it comes to mechanisms for safeguarding an employee’s interests in these circumstances, the following options may be considered: • structuring the agreement in such a way as to ensure that any obligation on the employee either to apply to withdraw their claim, or to undertake not to institute a claim, only becomes effective on prior receipt of the settlement monies. Although it may not be a preferred
Q&As
This Q & A is limited to the law in England and Wales. Stamp duty land tax (SDLT) is governed by Part 4 of the Finance Act 2003 (FA 2003). FA 2003, s 85 provides that the ‘purchaser is liable to pay the tax in respect of a chargeable transaction’. Who the purchaser is will normally be clear
Q&As
It is implicit in the Q&A that the original lessee did not make an election for market value treatment on the grant of the lease. If they had, no SDLT would be due on the staircasing transaction in question. The ‘relevant consideration’ for the transaction (ie, the aggregate of the chargeable consideration given for the transaction and any previous ‘linked’ transactions) seems to be the sum of the price paid for the staircasing
Q&As
Restrictive covenants are often included in a shareholders’ agreement in order to restrict the shareholders’ activities for the period during which they hold shares and for a fixed period after they cease to be shareholders. The restrictive covenants contained in the shareholders’ agreement will therefore apply to the individuals qua ‘shareholders’ and relate to the period of their share ownership and the period after they cease to hold shares. However, restrictions are imposed in both case law and EU/UK competition law on the scope of any such restrictions. For information on the permissible restriction parameters when including restrictive covenants in a shareholders’ agreement, see the following: • A guide to drafting a deadlock (50:50) corporate joint venture agreement—Restrictive covenants or A guide to
Q&As
When deciding to enter into a joint venture, parties will want to consider carefully the identity of the other proposed parties to the joint venture and the experience and resources that they will bring to the joint venture. They are therefore likely to want to ensure that the parties remain involved in the joint venture (at least for a pre-agreed period of time) and therefore have some controls over who they transfer their shares to. For the common types of restrictions on the transfer of shares that are included in joint venture transactions, see Practice Note: Share transfers—corporate joint ventures. Transfer restrictions in the articles of association Where the restrictions on the transfer of shares are included in the articles of association, in general, an act in contravention of a provision in the articles is to be viewed as invalid. However, in practice this is complicated by the rights
Q&As
Under the entitlement under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, a worker is entitled to 5.6 weeks’ paid annual leave, comprising: • a basic entitlement of four weeks’ annual paid leave, implementing the right under Directive 2003/88/EC, the Working Time Directive (WTD) • an additional entitlement of 1.6 weeks’ annual leave, which is a right under WTR 1998 only For detailed information on the right to paid annual leave, see Practice Notes: Holiday and Holiday pay. Holiday entitlement for shift workers In the case of workers with regular working hours, calculating the annual leave entitlement in terms of days is a relatively straightforward exercise, ie: • a full-time worker who works five days a week is entitled to 5.6 x 5 =28 days • a part-time worker who works three days a week is entitled
Q&As
See: Registration: Ross: Commercial Leases [167]–[216], which provides: ‘If, however, the lease itself is not registrable, which will be the case where the lease itself is for a term of less than seven years, an application must still be made for the easement to be noted against the landlord's registered title if the easement is to take effect as a legal interest. Until the registration requirements are complied with the grant or reservation takes effect in equity. The significance of this is that a legal easement will override both first
Q&As
The specific rules regarding the service of applications for matrimonial orders (petitions) are contained in Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, Pt 6 and the supporting practice direction FPR 2010, PD 6A. Service by court bailiff may be requested pursuant to FPR 2010, SI 2010/2955, 6.9. The procedure is set out in FPR 2010, PD 6A, paras 11.1–11.4. Once service of the application has been effected or attempted by the bailiff he or she must file a certificate of service in Form FP6 in the issuing court. See Practice Note: Service of documents in family proceedings other than applications for matrimonial and civil partnership orders in the United Kingdom—Certificate of service. If the
Q&As
An easement is a right granted to the owner from time to time of one piece of land over another piece of land for the benefit of the former. The two pieces of land will normally need to be appurtenant to each other—in most cases this will mean that they are adjoining. Common easements are rights of way and rights of support. The leading case in respect of easements remains Re Ellenborough. This provides that it is necessary for the creation of an easement that: • there is a ‘dominant’ tenement and a ‘servient’ tenement (ie that there is one piece of land that has rights over another, separate piece of land) • the easement is for the accommodation (ie