Entering into a contract is a bit like the giddy phase of getting cosied up or married — everything appears rosy and full of excited anticipation. But there’s the real risk of things going wrong if the relationship isn’t nurtured or doesn’t produce the results that you expect. Ultimately, if
In English law, most contracts do not need to be in writing to be valid. However, not every conversation leads to a contract… so how do the courts draw the line? Tell-tale signs After a telephone call between two businesses, one claimed £1m in fees from the other for services
Although you can agree pretty much anything you like under freedom to contract, there are some restrictions on that freedom: legislation: laws can mandate minimum requirements, outlaw certain terms and allow others only within specific parameters contract: a contract can restrict the parties’ rights in the future on a specific
Construction contracts contain a plethora of terms which require one party to give a notice to the other party. This used to require hard copy documents to be sent by post or fax. We have moved with the times, and many notices can now be provided by email to a
MF/1 is a balanced contract providing plenty of opportunities for the purchaser to check the performance of the works – through three series of tests – before the contractor is released from liability. It also clearly sets out limits on the contractor’s obligations. Limits on scope If you are acting
The Scottish appeal court has recently agreed with something I have been asserting for years, that a collateral warranty is impliedly limited by the scope and terms of the underlying agreement. What is a warranty? A warranty is a simple document designed to create contractual links between the provider of
A claim for a reasonable sum (literally ‘the amount he deserves‘) is available either under an incomplete contract or on the principle of restitution or unjust enrichment in equity. Claims in contract Where there is a contract, quantum meruit applies where: no sum is agreed for the scope set out
The Global Construction Disputes Report 2019 (by Arcadis) confirms that failure to understand or comply with the contract is the number one cause of disputes globally. Professor Renato Nazzini, in his guest foreword says: It would be tempting to look for solutions in ever more complex, more detailed contractual documents
Retention has had its day… Unjustified late and non-payment of a retention is unacceptable BEIS Report October 2017 Or perhaps that is wishful thinking? Build UK is implementing the Construction Supply Chain Payment Charter to move to zero retentions by 2025 (although some more enlightened employers like Network Rail have
Construction contracts and engineering contracts take a flexible approach to completion: time is not of the essence (if they were, then when the contractor was late the client could reject the works, plant or section and pay nothing) the original dates for completion of the work, plant or sections can
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