On-demand bonds and guarantees – What is the difference?

  The crucial question for the beneficiary of a security document, whatever it may be called (bond or guarantee), is “when would a demand under the document actually be payable?” Is it immediately (provided the demand complies with the requirements of the document) – an on-demand bond? Or is it really only after a default […]

Definitions of: “award”, “good faith” and “commercially reasonable”

  Understandably and rightly, parties faced with the prospect of potentially costly and lengthy litigation, usually seek to settle that litigation when they can. However, the eagerness to “make the litigation go away” (which can be attractive, even for a party convinced that it has a strong case) should not detract from the need to […]

Defective Premises Act

WATCH OUT FOR THE TENTACLES Are you familiar with the Defective Premises Act? You’re not? Oh dear … well before you do any work on a house, you really ought to read the following horror story The engineer admitted it had given advice but pointed a finger at the builder for not following it. Yes, […]

Damages Sampling must be Representative

High Court clarifies the position as regards claiming damages based on an extrapolated sample FOCUS: A recent High Court decision will provide helpful guidance to parties that elect to use statistical sampling and extrapolation as a means to demonstrate entitlement to substantial damages. There is a lot to take from this judgment. It offers a […]

Cross Examination Traps

How do you know if your cross examination is working? It’s simple. The witness breaks down and cries and turns into a quivering blob of Jello. Ahh…were it so simple… In the movies that’s what happens. On TV, that’s what happens. For those of you old enough to remember the TV show Perry Mason (now […]

Courts give guidance on prospective or retrospective delay analyses ~ Jan 18

A TCC decision last week has considered the difference between prospective and retrospective approaches to delay analysis. The decision finds that the two approaches will not necessarily lead to the same answer (contrary to suggestions made in a previous TCC decision). The decision may also provide support for the use of prospective approaches in the […]

Court Guidance on contractual interpretation ~ Jan 18

Contracts should regulate how a project is carried out. They establish a legal framework for the parties’ relationship that should also set up a mechanism for resolving any issues. At least, that’s the theory… In reality, most contracts are rarely consulted once agreed. That’s fine if the parties get along on site. But if disagreements […]

Counsel brief fees

In Hugh Cartwright & Amin v Devoy-Williams and another [2018] EWHC 1692 (QB) (4 July 2018) (Davies J) the High Court has ruled that a Master had wrongly reduced counsel’s brief fee, on a challenge to a detailed costs assessment, whereby the case settled the day before the trial was due to start. The brief […]

Contractual allocation of concurrent delay upheld

The High Court has found that a clause in a construction contract which allocates the risk of concurrent delays to the contractor is valid and enforceable.03 Oct 2017 The decision “reinforces the general principle under English law that contracting parties are free to allocate risk as they see fit”, according to construction disputes expert Simon […]

Contract agreement and subject to contract.

The Background The case of Malcolm Charles Contracts Limited v Crispin and Another [2014] EWHC 3898 (TCC) concerned extensive works to the Crispins’ house in Sevenoaks, Kent. The Crispins were based in China, but prepared to relocate to the UK by purchasing the property in 2009. They planned to carry out substantial works to the […]

Construction of commencing work before contract agreed.

Arcadis Consulting (UK) Limited (formerly Hyder Consulting (UK) Limited) v AMEC (BCS) Limited (formerly CV Buchan Limited) [2018] EWCA Civ 2222 The Court of Appeal has considered multiple exchanges of proposed contract terms and correspondence in order to determine the terms on which two parties contracted for design work and whether a cap on liability […]

Constructing Letters Of Intent

A DIFFERENCE OF EMPHASIS Letters of intent are paved with good intentions, but can trigger endless legal manoeuvres. A joyous time for lawyers but for nobody else. Here the couple to fall out were Skanska and supermarket chain Somerfield “Out trotted a ‘meanwhile’ agreement, headed ‘subject to contract’. The happy pair were edging into marriage […]