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Governing law and jurisdiction clauses in commercial contracts―checklist

Governing law and jurisdiction clauses in commercial contracts―checklist This Checklist of resources sets out some of the issues when considering governing law and jurisdiction in the context of commercial contracts. Governing law and jurisdiction clauses are categorised as boilerplate clauses in an agreement. For more information on boilerplate clauses, see: Boilerplate clauses—overview. For details about the role of boilerplate clauses and approaches to reviewing and drafting common boilerplate clauses, see Practice Note: The role of boilerplate. A governing law clause (also known as an applicable law clause) is used to allow the parties to specify the substantive law that will apply to the interpretation of an agreement and, in the event of a dispute, in relation to it. For an example of a governing law clause, see Precedent: Governing law clause. The applicable law clause in a contract will usually be set out alongside a jurisdiction clause. It is important to note that jurisdiction and governing law are separate issues.  A jurisdiction clause is necessary to allow the parties to...

Issues with franchising in an overseas territory—checklist

Issues with franchising in an overseas territory—checklist This Checklist sets out the issues for a franchisor to consider when preparing to operate the franchise in an overseas territory. The advance of technology has helped facilitate the rise of a global economy. This has led to the creation of opportunities for companies to trade outside of their domestic markets and exploit developing territories. However, a number of issues arise when a franchisor is preparing to operate in an overseas territory some of which are detailed below. PESTLE analysis A franchisor may wish to carry out a political, economic, environmental, sociological, technological, legal and environmental factors (PESTLE) analysis in relation to a new territory. The information obtained from the analysis can be used as a guide to strategic decision making when considering international franchising. Below is a list of legal and non-legal issues that might arise with international franchising. Political • There may be increased political or legislative risks that should be taken into consideration by businesses before they commence operations in...

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Industrial action that has statutory immunity—flowchart

Industrial action that has statutory immunity—flowchart FORTHCOMING CHANGE: The legal framework for giving protected status to industrial action and picketing is to be amended under clauses 54 to 61 of the Employment Rights Bill, introduced on 10 October 2024 (see Practice Note: The right to take industrial action—Employment Rights Bill). Clause 118 of the Bill confirms that many of the proposed changes will come into force two months after the Employment Rights Act 2025 is passed. The Strikes (Minimum Service Levels) Act 2023 will be repealed on the day on which the Act is passed. For further information on the Employment Rights Bill, generally, see Employment News Analysis: The Employment Rights Bill, and Employment Rights Bill 2024-views from the sector, LNB News 10/10/2024 85. To track the progress of the Bill through Parliament, see Practice Note: Employment Rights Bill—tracker. The government also launched a public consultation on creating a modern framework for industrial relations. The consultation seeks views on several specific...

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Client conflicts in criminal matters—when can you act?

Client conflicts in criminal matters—when can you act? There are two types of conflict: own interest conflicts and client conflicts of interest. This Practice Note explains when you can act if there is or may be a conflict of interests between two or more clients in a criminal matter. For the wider regulatory requirements on conflicts of interests, see Practice Notes: Conflicts of interest—law firms and solicitors and Conflicts of interest—systems and controls. What is a client conflict of interest? A client conflict of interest arises where your separate duties to act in the best interests of two or more clients conflict in relation to the same matter or a related matter. The SRA simply calls this type of conflict a ‘conflict of interest’. You must not act in relation to a matter or particular aspect of it if you have a client conflict of interest or a significant risk of such a conflict in relation to that matter or aspect of it, unless you fall...

Balance of powers between the trustees and the sponsoring employer

Balance of powers between the trustees and the sponsoring employer THIS PRACTICE NOTE APPLIES TO TRUST-BASED DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES What is the balance of powers? In the context of a trust-based occupational pension scheme, the balance of powers is the term used to describe how the powers in the scheme's trust deed and rules are distributed between the trustees and the sponsoring employer. Powers may be held: • by the sponsoring employer alone • by the trustees alone • by the sponsoring employer and the trustees jointly • by a third party (eg the scheme actuary) Powers may also require agreement or consultation with another party. The balance of powers is usually determined by the sponsoring employer when the scheme is established and the trust deed and rules are drafted. Changes made to the trust deed and rules while the scheme is ongoing may alter the balance of powers between the trustees and the sponsoring employer. The balance of powers varies from...

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Leases—tenant environmental covenants

Produced in partnership with ELM Law 1 Definitions Environment all or any of the following media, namely air (including the air within buildings and the air within other natural or man-made structures above or below ground), land (including buildings and any other structures or erections in, on or under it and any soil and anything below the surface of the land) and water (including surface water, coastal water and groundwater) and any living organisms and ecosystems supported by those media Environmental Law all applicable statutes, subordinate legislation, directives, regulations, common law, orders, judgments, instructions of any regulatory authority or court, codes of practice and guidance...

Environmental clauses for a facility agreement

Produced in partnership with DLA Piper UK LLP [ These clauses are intended for insertion in a Facility Agreement relating to the operation of a business, which involves the occupation of use of properties. It accordingly assumes the definition of terms which would typically be included in such an agreement, such as ‘Agent’, ‘Business’, ‘Event of Default’, ‘Finance Party’, ‘Legal Due Diligence Report’, ‘Material Adverse Effect’, ‘Obligor’ and ‘Property’.] Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content. For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and...

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Where a settlement agreement provides for the employer to make a contribution to the employee’s legal costs, payable direct to the employee’s law firm, can the law firm bring proceedings against the employer if it fails to pay?

Where a settlement agreement provides for the employer to make a contribution to the employee’s legal costs, payable direct to the employee’s law firm, can the law firm bring proceedings against the employer if it fails to pay? For information on: • the legal requirements that must be met for a settlement agreement to be binding and valid to settle statutory employment claims, see Practice Note: Settlement agreements in employment—legal requirements • the practical issues that typically arise in relation to a settlement agreement, see Practice Note: Settlement agreements in employment—practical and tax issues Contribution to legal costs A settlement agreement will typically provide for the employer to make a contribution to the employee’s legal costs. For general information on payment of legal fees incurred by an employee in relation to a settlement agreement generally, see the section of Practice Note: Settlement agreements in employment—practical and tax issues entitled ‘Payment for legal advice’. For a sample clause in the settlement agreement dealing with payment of legal fees, see Clause 13.2...

Who is responsible for an occupier's liability claim when the accident occurred in premises subject to a lease? The tenant company had ceased trading before the accident and a new tenant company had not entered into a new lease agreement with the landlord.

Who is responsible for an occupier's liability claim when the accident occurred in premises subject to a lease? The tenant company had ceased trading before the accident and a new tenant company had not entered into a new lease agreement with the landlord. This Q&A considers who may qualify as an occupier under the Occupiers’ Liability Act 1957 (OLA 1957). OLA 1957 contains no definition of an ‘occupier’. The issue of who is an occupier is dealt with under the common law. It is important to recognise that the key issue is of control over, rather than ownership of, the premises. An occupier is any legal entity with a sufficient degree of control over premises such that it can properly be considered to be an occupier (see Wheat v E Lacon). The key element is that the occupier has effective control. There is no requirement for the occupier to have a legal interest in the land. There can be multiple occupiers of premises at any given time. It has...

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FCA acted ‘irrationally’ over mis-selling redress, MPs say

Law360, London: A London court on 10 December 2024 began a judicial review of the Financial Conduct Authority's (FCA) decision not to rethink its treatment of consumers blocked from a bank mis-selling redress scheme after a challenge brought by a cross-party group of parliament.

Key family law developments in 2024 and looking ahead to 2025

Family analysis: The Lexis+ Family Practical Guidance ‘Next Generation’ Consulting Editorial Board (CEB) review the most significant family law developments in 2024 and consider what they anticipate may be key developments in 2025. The ‘Next Generation’ CEB members are Matt Foster, senior associate at Charles Russell Speechlys LLP, Aimee Jones, senior associate at Sternberg Reed LLP, Laurie Kershaw, senior associate at JMW Solicitors LLP, Sacha Lee, associate at Dawson Cornwell LLP, and David Wilkinson, solicitor at Slater Heelis.