Category: Legal updates

Irrational, arbitrary, illogical

The literal reading of a formula for rent increases was irrational, arbitrary or illogical. But what were the court’s powers to override an express clause in the lease? The purpose of the clause was to increase the rent each year by a cost of living rate (the retail price index).

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Incorporating T&C into LOI

A letter of intent is a specialised form of short form contract in the style of a letter. It is widely used in the UK construction sector to get a project started with the minimum of paperwork. Most letters of intent include a variety of elements: a request to provide

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Doing deals badly

The process of getting a deal done should be simple – but somehow we often far more complex than it needs to be… through time pressures, through inconsistency, or through burying our heads! In a recent English court case (CLS Civil v WJG Evans), the buyer and the supplier tied

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Only if you comply

When considering UK construction standard form contracts, it has been clear to most users that the NEC suite contains a condition precedent or time-bar clause, whilst the JCT suite does not. Conditions precedent under the JCT suite Strictly speaking, that view has not been true since Walter Lilly v Mackay

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Limiting letters of intent

Financial limits in letters of intent are used to protect the client – because they rarely include a fixed price and are relying on ‘reasonable costs’ – and as an incentive for the contractor to sign the full contract.   These limits on the client’s liability to pay for works are

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Lessons from failure: don’t delay

They say that no plan ever survives first contact with reality. This can also be true of your contract process. You need to be flexible with what you want as any contract requires both buyer and seller to agree to the terms. A £40m construction dispute amply demonstrates the pitfalls

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Using and sharing info

Often in contracts, clauses relating to using and sharing information are split into ‘legal chapter headings’ ie topics that make sense to the contract writer but don’t necessarily reflect the needs of the contract user. When I create contracts I prefer a user-focused heading like ‘using and sharing documents and

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More paperwork, no solutions

Collateral warranties (if you don’t know what they are, read what is a collateral warranty) are common on UK construction projects. The problem that they were designed to address is that if the works or services are performed defectively then it won’t necessarily be the employer of the wrongdoers who

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Be clear to avoid ambiguity

Although it was over 200 pages (with 30 pages of defined terms), given that it had been through 21 iterations and redrafts, you would have thought the lawyers would have ironed out all the wrinkles and resolved any drafting issues… or not! A contract relating to joint ventures and letters

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Can you suspend works or services?

If you don’t get paid or your client is in breach of contract, can you just stop work? It can be exceeedingly expensive to get this legal issue wrong! Stop or continue? Under English law, and assuming there is no express term or statutory provision* which allows suspension: the innocent

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