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In short, unless the provision is drafted in a way that also looks to the future, then such a provision by itself will probably only have the effect of preventing the implied grant to the buyer of any rights of light in existence at the date of transfer. It is unlikely to prevent the acquisition of prescriptive rights of light in the future. Acquiring rights of light Rights of light can be acquired in a number of ways including by express or implied grant or as a result of long user/enjoyment: prescription. Prescription Rights of light are most commonly acquired by prescription, ie long user. Parties usually rely on section 3 of the Prescription Act 1832 (PA 1832), which requires actual enjoyment of light through apertures in a building for a period of 20 years. However, such rights
Q&As
A deed may be required by legislation (for example, for powers of attorney, section 1(1) of the Powers of Attorney Act 1971, leases and transfers of land (sections 51(1) and 52(1) of the Law of Property Act 1925 etc). For an instrument to be a valid deed, it must comply with certain formalities comprising both statutory and common law principles. The formalities required will depend on the nature of the document and the executing parties. See Practice Note: How to execute a deed. Unlike simple contracts, deeds are enforceable despite a lack of consideration. Deeds are also therefore sometimes used in situations, eg where: • there is no consideration being given in exchange for the contractual promise or there are doubts as to the adequacy of the
Q&As
This response assumes that the deed is executed by an individual. This response excludes execution under seal, by electronic signatures, by corporation, company, partnership, local authority, charity, registered society, individuals of incapacity and through an agent. The short answer to this question is that a deed can be signed abroad by a foreign national and can be witnessed abroad by a foreign national. Having said this, the requirements must be heeded to ensure formalities of a valid deed. First, it is worth noting that signing one’s signature in the deed (ie executing a deed) and witnessing the signing are two different requirements for a valid deed. Both statutes and common law have defined deeds and their execution. Section 1(3)–(4) of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) sets out the formalities governing the execution of a deed by an individual. The UK’s Land Registry also has prescribed execution clauses for use by individuals in HM Land
Q&As
Unilateral variation of a contract Generally, a contract cannot be unilaterally varied by a party. One notable exception is the case of release where the release is by one of the parties to a contract discharging their right of action against the other which arises out of the contract. See Commentary: Consensual variation; unilateral variation etc: Halsbury's Laws of England, Contract [373]. A contract may validly grant one party a unilateral power of variation (see: Page v Liverpool Victoria Friendly Society (1927) 43 TLR 712 (not reported by LexisNexis®) and Morris v C H Bailey Ltd [1969] 2 Lloyd’s Rep 215 (not reported by LexisNexis®)). In such circumstances: • no further formality is required, and • there is no need for the change to be supported by consideration, unless the contract specifically requires this However, a unilateral right to vary a contract is not necessarily unfettered and may in certain circumstances be ineffective. See the case of Nash and Staunton v Paragon Finance
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Formalities for a deed The following are the necessary requirements for a deed: • it must be in writing • it must make it clear that it is intended to be a deed. This will usually be clear on the face of the document with words such as ‘executed as a deed on [date]’ • it must be validly executed as a deed • it must be delivered The method and form of execution for a deed will vary depending on the type of legal entity that is executing the deed. The two most common situations in which a deed needs to be witnessed are execution by an individual and execution by one director on behalf of a company. In order for a deed to be validly executed by an individual it must be: • signed by them • attested by a witness. Each party must sign ‘in the presence of a witness who attests the signature’ • delivered as a deed Alternatively, it may
NEWS
Property analysis: In this case, the First-tier Tribunal (Property Chamber) (FTT) considered an important point on which there is no clear authority, concerning whether, for the purpose of creating a deed, it is possible to witness a signature remotely—ie does the law in relation to deeds require physical presence, or is virtual presence enough? A related question was also considered, namely whether a witness to a signature could attest to the said witnessing days after the event. Written by Tricia Hemans, barrister at Falcon Chambers.
Q&As
Contracts and deeds There are two types of written agreement: • simple contracts. No particular formalities are required. There must be consideration and the limitation period is six years under section 5 of the Limitation Act 1980 (LA 1980). See: Formation and interpretation—overview. • deeds. There is no legal definition of a deed but various formalities are required in accordance with section 1 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) in the case of an individual. The document must be clear on its face that it is intended to be a deed and be validly executed, namely signed and witnessed and delivered as a deed. An agreement made by way of deed does not require consideration and the limitation period applicable to deeds if twelve years under LA 1980, s 8. See Practice Note: Deeds. See
Q&As
We have not considered any UK tax implications raised by the query. We have assumed that the non-charitable organisation would take the form of an unincorporated association A common good trust is usually a form of trust under which property is held on charitable trusts and applied for the benefit of the inhabitants of a named geographical area, such as a town or city. A form of common good trust is available in Precedent: Charitable trust—declaration of trust establishing a ‘common good’ trust. Such a form of trust is unlikely to be suitable for a non-charitable organisation. The reason is that, under English law, non-charitable
Q&As
Delivery does not mean physical delivery. Rather, a deed is delivered when a party makes clear its intention to be bound, regardless of whether that party retains possession of the document. No special form or observance is necessary for the delivery of a deed and it may be made in words or by conduct.
Q&As
Provided a discretionary Will trust is distributed within two years from the date of death on appropriate terms, the relevant property regime currently applicable to discretionary trusts will not apply. This relief is conferred by section 144 of the Inheritance Tax Act 1984 (IHTA 1984) and consists of two limbs: • first, it provides that the distribution is not subject to the exit charge under IHTA 1984, s 65 which would otherwise arise, and • second, it provides that the IHT legislation is to have effect as if the Will had provided that on the testator’s death the property should be held as it is held after the distribution qualifying for the relief Practice Note: IHT—use of discretionary Will trusts provides that there are various principles
Q&As
To execute a document unilaterally means that the document is signed and delivered by only one party, without the need for execution by any other party. This is often seen in deeds that impose obligations on one party alone, such as a deed of gift or a power of attorney. A deed of covenant that imposes obligations on one party only may validly be executed as a deed unilaterally by that party, provided that the requirements of section 1(2) of the Law of Property (Miscellaneous Provisions) Act 1989 are satisfied. Under that section, to be a deed, an instrument must: • make it clear that
Q&As
Novation is the method by which the parties to an existing contract 'transfer' the rights and obligations of that contract to a third party. Novation is not strictly a transfer of rights and obligations but a discharge of the rights and obligations between contracting parties and a recreation of them with a third party (replacing an original contracting party) and one (or more) of the contracting parties to the original contract. The requirements of a novation are both consideration and consent. From an English law perspective, matters to consider in evaluating the effectiveness of the deed of novation include (but may not be limited to) the following: Consent 'The consent of all the parties is required for novation (compare