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Q&As
For further information, generally, see Practice Note: Fixed-term employees. When it comes to terminating/not renewing the contract of a fixed-term employee, it will be necessary to consider: • the terms of the employee’s contract in relation to the duration of the contract/circumstances in which contract expires or terminates (see, eg, Precedent: Employment contract basic version, clause 1.4, and the associated drafting note) • whether the contract has been previously renewed, and if so, the overall length
Q&As
Where a landlord of commercial premises lets a property to a tenant by way of a lease, it will almost inevitably be the case that the tenant will be responsible, for the utilities, including entering into a contract with the utility company. This protects the landlord in the event that the tenant defaults, or becomes insolvent, or assigns the lease leaving arrears. The real issue is as between an outgoing and an incoming tenant. Ordinarily, it will be the case that the outgoing tenant is the party contractually liable to the utility company for the payment of services. If the outgoing
NEWS
Arbitration analysis: This case involved an appeal against the dismissal of an application for an anti-suit injunction restraining the first respondent from continuing foreign court proceedings which had allegedly been brought in breach of an arbitration agreement. Although the foreign court proceedings involved a tortious claim in respect of damage to a trestle bridge caused by a vessel owned by the appellant, it was held that the claim arose out of or was in connection with certain bills of lading evidencing contracts of carriage entered into between the appellant and the first respondent, and had therefore been brought in breach of the arbitration agreement contained in each bill of lading. The appeal was allowed, and an anti-suit injunction granted. In the course of its decision, the court clarified the ambit and scope of the phrase ‘dispute arising out of or in connection with this contract’, which (either in these exact terms or some variation thereof) is commonly found in dispute resolution agreements. The court also provided useful guidance on when a dispute beyond the terms of a contract may nonetheless fall within the scope of an arbitration clause employing such terms. Written by KOH Swee Yen senior counsel, head (International Arbitration Practice) and partner (Commercial & Corporate Disputes Practice) at WongPartnership LLP, and Samuel LOW, associate at WongPartnership LLP.
Q&As
An assignment is the transfer of a right or an interest vested in one party (assignor) to another party (assignee). The effect of a valid assignment is to entitle the assignee to demand performance of a contractual obligation. Assignments may be legal or equitable. A legal assignment is one which meets the requirements set out in section 136(1) of the Law of Property Act 1925 (LPA 1925). It must be: • absolute and unconditional and not purport to be by way of charge only • made in writing and signed by the assignor • expressly notified in writing to the obligor Equitable assignments may arise in the following circumstances: • where there is an intention to assign, but not all of the formalities of a legal assignment are met under LPA 1925, s 136(1), the assignment may still be valid as an equitable assignment. The formalities for an equitable assignment to be effective are far
Q&As
Questions of this nature are very difficult to answer without sight of the actual employment contract. Like post-termination restrictions (restrictive covenants), confidentiality clauses are construed on a narrow basis given that they impose restrictions on basic freedoms. Hence, the actual wording of the clause is critical and needs to be carefully and forensically analysed. Whether or not there is an express contractual clause, employees are always under an implied duty not to disclose confidential information belonging to their employer. In certain circumstances, such as information concerning trade secrets, the duty may persist after the employment relationship has ended (whether by resignation or termination). The duty of confidentiality was always subject to a common law ‘public interest exception’ even prior to the coming into force of the Public Interest Disclosure Act 1998 (PIDA
NEWS
The Joint Contracts Tribunal (JCT) has announced that the Minor Works Building Contract family 2024 Edition will be released on 15 May 2024. The release will include the Minor Works Building Contract 2024, the Minor Works Contract with contractor's design, the Minor Works Sub-Contract with sub-contractor's design, a Tracked Change Document, the Short Form of Sub-Contract and the Sub-subcontract 2024. JCT will also release updates to the Model Administration Forms, including MW and MWD 2024 Admin – Contract Administration Model Forms (digital only).
Q&As
Whether or not a contract is valid will depend on the facts of the situation, the parties’ respective obligations and whether or not acceptance has occurred by conduct. Formation and execution Contracts can be formed orally, in writing or by deed (see Practice Notes: Contracts required to be in writing and Deeds). Oral and written contracts are executed ‘in simple form’ and deeds are executed in ‘solemn form’. In this question, it has not been confirmed whether the query relates to a simple contract, or a deed. Should the query relate to a deed, the rules for execution are more stringent and deeds must be executed in accordance with statutory formalities that go beyond simple signature in order for the document to be valid and enforceable. For further information on the execution requirements, see: • Practice Notes: Execution formalities—individuals, Executing documents—deeds and simple contracts and Execution formalities—companies • Precedents: Execution clause—individual—deed and Execution clause—company—deed Acceptance A
Q&As
In respect of drafting a claim form, there is no ‘correct’ answer here as Part 7 or Part 8 can be used when issuing proceedings for specific performance depending on whether or not there is a substantial dispute of fact. Issuing a claim under CPR Part 7 is used for most types of claims, however, in some cases the CPR 8 procedure may be used. As most
NEWS
Restructuring & Insolvency analysis: This judgment concerned two consolidated proof of debt adjudication appeals. In determining those appeals, the court considered, among other things, the effect of a post-Enterprise Act 2002 (EA 2002) administration on limitation. After reviewing existing authority and statute, the court confirmed that, among other things, time does not stop running for limitation purposes when a company enters a post-EA 2002 administration.
Q&As
In answering this question, it has been assumed that you are referring to a standard form B2B contract. It is important to note that the Unfair Contract Terms Act 1977 (UCTA 1977) does not apply to international supply contracts. Hence, for the purposes of this answer, it has been assumed that the contract is not of this nature. Challenge on basis of whether such payment is a penalty Parties will sometimes seek to agree in their contract what sums should be payable upon breach of a particular term or several terms. Where they do so, whether such a clause will be enforceable will depend on whether the courts construe it as: • a liquidated damages clause (enforceable), or • a penalty (unenforceable) Liquidated damages clauses are clauses whereby the parties fix in advance
PRACTICE NOTES
This Practice Note considers the different legal bases for bringing a professional negligence claim, ie founding the existence of the professional’s duty to the claimant. Sometimes the question of whether a duty exists is bound up with questions as to the specific loss being sought to be recovered and thus the scope of the duty and related issues, for guidance on which see: Professional negligence claim—scope of duty, causation and remoteness—checklist and related content. For guidance on how to commence a professional negligence claim, see Practice Notes: • Starting a professional negligence claim—a practical guide • Pleading professional negligence claims—worked hypothetical examples and related precedents For guidance on the standard of care in professional negligence claims, see Practice Notes: • Standard of care in professional negligence claims • Standard of care—solicitors and barristers Guidance on parties to professional negligence claims and the role of the Pre-Action Protocol for Professional Negligence claims includes Practice Note: Professional negligence claims—the pre-action protocol. For a summary of illustrative
PRECEDENTS
[Short form 1 The Contractor shall take all practicable steps to prevent any trespass, public or private nuisance or other interference with the rights of any adjoining or neighbouring landowners, tenants or occupiers or any statutory undertakers arising out of the carrying out of the Works or any obligation pursuant to clause [2.35