Category: Legal updates

Complete your contract

Now for some magic! This post is about invisible clauses. Implied Terms If your contract does not have enough terms to be workable, clauses can be added (implied) to make it work properly. They can be added as a result of: Custom [read more] Laws or statutes [read more] Cases

Read More »

Using a net contribution clause

As a supplier on a construction project, English law allows you to use The Civil Liability (Contribution) Act 1978 to pass on some of the losses claimed against you. You can ask for a contribution from any other contractor, supplier or consultant who is responsible for the same damage [see

Read More »

A contract creates mutual obligations

I was asked to sign a framework agreement recently [read more] that said it did not create mutual obligations. I refused as that clause showed a fundamental misunderstanding of what a contract does. This was not the first time I had seen this type of clause … Mutual obligations A

Read More »

How the law intervenes in contracts

As Ken Adams says in his blog on the Nexus Between Contracts and the Law, contracts cannot exist without the courts to interpret, intervene and implement their terms, including by: Deciding whether individual terms in the contract are fair; Deciding whether your contract meets the formalities required; Deciding whether your

Read More »

Ignorance is no defence

Your knowledge of the law is irrelevant to your liability. Given that you have to comply (whatever your contract or conscience says), why do most contracts require the parties to comply with statutory requirements? Clarity Although ‘ignorance is no defence’, contracts are tools to help the parties to understand their

Read More »

What does ‘subject to contract’ mean?

Recently I came across a contact who had a standard footer on her emails, not about saving the environment but that ‘Any offers made in an email or attachments are subject to contract.’ It’s not just the lawyers who throw caution to the wind and bandy about ‘subject to contract’. 

Read More »

When is an offer not an offer?

When is an offer not an offer but the award of a contract? When its a snake in the grass? The TCC recently has to grapple with the rights of the parties under a framework agreement, in unusual circumstances. What is a framework agreement? A framework agreement normally allows an

Read More »

Can you change a bonded contract?

Can you amend a bonded (or guaranteed) contract without the beneficiary losing its rights to claim under the associated bond? This was the decision of the Court of Appeal in Hackney Empire v Aviva which has received more coverage than most bond cases. Is it because the case decided a

Read More »

Review your bond: does it survive changes?

With any bond and all guarantees, it is imperative that the document continues to provide a form of surety throughout the life of a project. That means the document has to continue to bite even where there are changes to the project: whether that is changes to the scope, the

Read More »

Review your liability for breach

A few years ago, a developer (Gubbins) appointed an engineering firm (Grimes) for a housing development. Grimes agreed to design a road and the drainage, and obtain the relevant s38 agreement (for adoption of the road by the local authority). That work had to be completed by March 2007. It

Read More »