Category: Write

Correctly using liquidated damages

How many errors can one contract have in their clauses relating to liquidated damages? Genuine pre-estimate of loss In Buckingham v Peel, the contract included a clause stating: The Parties agree that… having given careful consideration to this matter, all LADs payable by the Contractor are considered by the Parties

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No-one cares what you think

No-one cares what you think your contract meant… As an English court said: What each of the parties intended or understood by their written and spoken communications is irrelevant unless that intention or understanding was shared with and agreed or accepted by the other party. English legal rules on contract

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Genius, mistaken or madman?

In 1759 Arthur Guinness signed a 9000-year lease at a rent of £45. A long lease is normally 99 years and a lease for 999 years is often seen as equivalent to freehold. So 9000 years? You won’t be surprised to know that he purchased the site a few years

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Subcontractors and their design responsibility

A subcontractor on an anerobic digestion facility seems to have found itself in hot water when the tanks it had designed and supplied failed during testing. The main contractor (DBE Energy) had asked Biogas to provide mechanical and process design services for the facility, without any contract being signed or

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Is plain language enough?

There is a growing global movement towards plain language contracts, especially for individuals or consumers. What does plain language mean and is it enough? What is plain language? According to the Plain Language Federation (and this is the definition in the proposed new ISO on the topic): A communication is

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Contracts as communication tools

We have never met anyone without a legal background who enjoys working with contracts So starts a 2013 paper by Stefania Passera and Helena Haapio which rues the fact that contracts have become stuff for lawyers rather than as a framework for successful deals and the relationships between a supply

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Skill and care: no guarantee

The issue of quality is a thorny one on construction projects and covers everything from the construction process, to use and performance. The two main standards are reasonable skill and care, or fitness for purpose. Unless a contract clearly specifies a different standard, then you may have to rely on

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Be user-friendly

Contracts are not often described as user-friendly… more often they are noted as being the opposite. That may be harsh if it comes from a user, but it is feedback you need to act on if it comes from a judge. Not user-friendly In Blu-Sky v Be Caring the English

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Easy to find: structuring your contract

A contract is not just a set of legal terms. Contracts include: processes such as change management deliverables and KPIs works information programming payment schedules policies and codes of conduct A completed contract is a mix of commercial, operational, legal and technical items. The difficulty for most users is finding

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Liability linked to commitments

At a recent event, one of the delegates stated “liability has to be proportional to the commitments being made.” This is otherwise described as risk v reward. What we know – from the World Commerce and Contracting Most Negotiated Terms Report – is that limits on liability are the most

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