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Q&As
The customer may have business problems (organising a new supplier, etc) but may or may not encounter legal problems. If the supplier becomes insolvent, and stops supplying, the supply contract can usually be terminated without penalty. The contract terms should be checked, but there is normally no risk to the customer as supply terms usually provide for payment after delivery (ie 30 days credit to the customer) so the customer will not have paid for undelivered goods. If these are, for example, specialist goods for which the
NEWS
The Association of Consultant Architects (ACA) has announced the transfer of its Framework Alliance Contract (FAC-1) and Term Alliance Contract (TAC-1) to Thomas Telford Ltd—the commercial arm of the Institution of Civil Engineers and publisher of the NEC contract suite. FAC-1 and TAC-1, which have collectively supported £45bn worth of construction programmes globally, will now be integrated into the NEC suite, providing practitioners with a single source for the full range of major collaborative contracts. King's College London's Emeritus Professor, David Mosey CBE, the lead author of FAC-1 and TAC-1, has also joined the NEC4 Contract Board.
NEWS
Construction analysis: The Technology and Construction Court (TCC) granted summary judgment enforcing an adjudicator’s decision requiring the defendant to make payment to the claimant of sums due under a settlement agreement. The court held that the settlement agreement made between the parties constituted a variation to the original construction contract, and consequently the adjudication provisions from the original contract were preserved and available to the parties for disputes in relation to the settlement agreement; the adjudicator had jurisdiction.
Q&As
When responding to this query, we have assumed that the contract is of a type that falls within the scope of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR 2013), SI 2013/3134 to which the cancellation rights apply (ie it is not excluded by CCR 2013, SI 2013/3134, regs 6, 27 or 28) The rights set out in CCR 2013, SI 2013/3134 apply to business-to-consumer contracts governed by UK law. Whether the parties intend for UK law to be the governing law of the contract is usually set out in a ‘choice of law’ or ‘governing law’ clause in the contract. Consumers outside of the UK and not in the EU Outside of the UK and the EU, in the event of a dispute, the rules that will be applied by the courts to determine the governing law will vary from country to
Q&As
The scope of a contractual time bar provision will in all cases depend upon its terms. However, it is unlikely that a typical time bar clause in a construction contract, which provides for the expiry of the right to raise an action for breach of contract after a specified period, would prevent the recovery of contributions under the Civil Liability (Contribution) Act 1978 (CL(C)A 1978). Rights to contribution: a recap Under CL(C)A 1978, where a defendant (‘D1’) is liable to a claimant (‘C’) for damage,
Q&As
Clauses 1.8.2 and 4.24.6 of the JCT Design and Build Contract 2016 set up a two-stage process. The first stage is under clause 4.24.6; unless the effects of the final statement are challenged before the due date then the final statement becomes conclusive. The second stage arises under clause 1.8.2, if the final statement is challenged before the due date then within 28 days of the date of issue of the final statement proceedings must be commenced. In order to be able to commence proceedings such proceedings must be commenced within 28 days of the date of issue of the final statement regardless of the due date. The potential issue arises from the fact that the 28-day period for commencing proceedings runs from the date of issue rather than
PRECEDENTS
[ON THE HEADED NOTEPAPER OF CLAIMANT’S SOLICITORS] FAO [ [APPROPRIATE DIRECTOR OR SENIOR PARTNER] ] [NAME OF DEFENDANT BROKER] [ADDRESS LINE 1] [ADDRESS LINE 2] [POSTCODE] [DATE] Dear [insert organisation name] [PROSPECTIVE CLAIMANT’S NAME] AND [PROSPECTIVE DEFENDANT’S NAME] Preliminary notice of claim We write on behalf
NEWS
The Welsh Government has published a developer remediation contract alongside detailed dispute resolution guidance. The guidance sets out mediation procedures for resolving disputes between developers and third parties under the contract.  Eleven major developers, including Barratt Redrow, Taylor Wimpey and Bellway, have signed the contract. Developers are required to cover all mediation costs, with agreements to be reached within 60 business days of initiating the dispute resolution process.
PRECEDENTS
[ON THE HEADED NOTEPAPER OF CLAIMANT’S SOLICITORS] Our ref: [insert your file reference for this matter] FAO: [INSERT RELEVANT NAME] [NAME OF DEFENDANT BROKER] [ADDRESS LINE 1] [ADDRESS LINE 2] [POSTCODE] [DATE] Dear [insert name] [PROSPECTIVE CLAIMANT’S NAME] AND [PROSPECTIVE DEFENDANT’S NAME] LETTER OF CLAIM [We write further to our letter dated [insert date of your preliminary notice of claim, if sent]. That letter was a preliminary notice of claim sent pursuant to the Pre-Action Protocol for Professional Negligence, and required an acknowledgment by [insert date].] [We are in receipt of your letter dated [insert date] acknowledging receipt of the preliminary notice. [However, we await confirmation that your professional insurers have been advised of the circumstances of our client’s claim against you. We also request that you pass a copy of this letter to them, and confirm to us that you have done so.] ] 1 Overview and basis of claim 1.1 [As you are aware], [W OR w]e act for [insert claimant’s name]. 1.2 We are instructed that in or around [insert date] you were instructed
PRECEDENTS
[ON THE HEADED NOTEPAPER OF CLAIMANT’S SOLICITORS] FAO [CLIENT PARTNER OR SENIOR PARTNER] [NAME OF DEFENDANT ] [ADDRESS LINE 1] [ADDRESS LINE 2] [POSTCODE] [DATE] Dear [insert organisation name] [PROSPECTIVE CLAIMANT’S NAME] AND [PROSPECTIVE DEFENDANT’S NAME] Preliminary notice of claim We write on behalf of our client [insert
Q&As
Please note, this Q&A only covers the contractual position under English law. Suppliers often enhance their position by supplying goods on terms incorporating a reservation of title (ROT), which allows one party (the seller) to retain title to delivered goods until another party (the buyer) has paid for them in full or, where permitted to do so, sold them on to a third party. A clause providing for a retention of title arrangement (ROT clause) can sometimes be referred to as a 'Romalpa' clause, after the case Aluminium Industrie Vaassen v Romalpa Aluminium. For further information, see Practice Note: Retention of title—overview. In relation to the application of English and German law, when the English court determines that the applicable law is that of another jurisdiction, it will hear expert evidence as to how that law should
PRACTICE NOTES
This Practice Note covers express terms, implied terms, imposed terms and incorporated terms that may make up an employment contract. It considers written or oral terms, terms implied for business efficacy or using the officious bystander test, by conduct, custom or as a characteristic term. It goes on to consider terms imposed by common law or statute, terms incorporated from other documents such as collective agreements and employee handbooks, entire contract or entire agreement clauses, no oral modification clauses, the distinctions between contractual conditions, warranties and innominate terms, negligence liability and variation of contract. The Unfair Contract Terms Act 1977 (UCTA 1977) is also covered. Although employers and employees have a number of rights given to them by statute, the basic relationship between them is still governed by the contents of the contract of employment. It is important to identify what the terms of that contract are. The law of contract is important to many areas of employment. It is used to decide the true contract between parties, which is often not as simple as it