Category: Risk

No contract? No money!

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

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Restricting your freedom to contract

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

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Beware Sloppy Procedures

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

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Limits on the Contractor’s Liability under MF/1

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

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Limited guarantees

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

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What is quantum meruit?

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

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Contracts Create Disputes

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

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What No Retention?

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

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Can You Recover Delay Damages After Termination?

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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Excluded Claims

There are a number of ways of responding to possible risks events: one option is to exclude your responsibility (or liability) for specific types of claims or specific categories of losses. These terms which give effect to that option are ‘exclusion’ clauses (also known as exemption clauses). The Court of

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