Month: November 2016

The Dotted Line: The simplest solution is often the best

I hope you enjoyed last fortnight’s tip sheet which discussed the Tesco Bank Hack. To paraphrase this article in the Register ‘the stakes are higher than they have ever been. When it comes to reviewing your contracts, tomorrow may be just too late’. Tesco has already paid out £2.5m. Read

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Lessons from Failure: Use Simple Effective Terms

If you are writing a contract, you should really make sure that its terms are simple and effective. You need to ask: do both parties understand what it does? what is it meant to do? does it actually do? when would it apply? how does it transfer risk? Lessons from

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Lessons from Failure: Agree Delay Damages

Given the likelihood of delays on a construction project, it makes good commercial and practical sense to pre-agree the compensation that the contractor will pay to the client if it is causes any delay to completion. These are called liquidated and ascertained damages (JCT) or delay damages (NEC). [This blog

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Agree Compensation In Advance

Given the likelihood of small breaches to a contract, it makes good commercial and practical sense to pre-agree the compensation that party A will pay to party B for that breach. These are called liquidated damages: the paradigm case in which the law of penalties is engaged is where a

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The Dotted Line: We own your immortal soul

I hope you enjoyed last fortnight’s tip sheet – you can read it again here. I’d love to know which bit you found the most useful. This edition explains what you can learn from tech contracts, Tesco, and a German pilot. Read it here » If you’d like to receive

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Lessons from Failure: Contract before Works

Which should come first: works or contract? Well you might expect me to say the contract but here’s why… The defective car park In 2001, two companies were trying to agree the terms for a long-term agreement on a variety of projects. One of those projects was in a hurry,

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Lessons from Failure: Don’t Overstay Your Welcome

The Guardian’s Consumer Champion column told the story of a shopper who had been charged £70 for overstaying at a 90-minute car Aldi car park. Although I have some sympathies with the amount of this charge, the report didn’t tell the whole story of car parking charges… Are you sitting

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