Profit costs meaning

Palmali Shipping SA v Litasco SA [2020] EWHC 2581 (Comm) What are the practical implications of this case? This judgment carries two key consequences. First, Foxton J determined that the court can grant summary judgment, on the pleaded approach, for the quantification of damages in a breach of contract, even where the defendant is unable to show that no damages are recoverable at all. A dispute over the proper methodology for assessing loss amounts to a ‘particular issue’ within CPR 24.2. Second, the court considered the so‑called ‘net loss approach’ to damages. Where a claimant bears a legal obligation to third‑party companies for costs incurred in performing the contract, those expenditures must be credited when arriving at the net loss claimed against the defendant, even if those third‑party companies have the same beneficial owner as the claimant and even if, in practice, such companies did not ordinarily insist on payment... What was the background? Palmali...

In this issue: Key DR developments Claims and remedies Cross border disputes Applications Evidence and disclosure New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments Court and the legal profession Both principal political parties set out proposals in their manifestos for the general election to ease the escalating backlog in the nation’s courts, yet practitioners in England and Wales still have a few more items on their wish list for the incoming administration and would like them considered. For more detail, see Law360 Analysis: Lawyers set out wishlist for next UK government. Claims and remedies Contractual breach and remedies—misrepresentation and contractual construction In claims arising out of the sales of fixed interest rate business loans before 2010, Mr Justice Zacaroli, in Farol Holdings Ltd v Clydesdale Bank plc and National Australia Bank [2024] EWHC 593 (Ch) (a judgment delivered in March), addressed whether: (i)...

In this issue: Key DR developments Claims and remedies Costs and funding Injunctions Enforcement Litigation New content Dates for your diary Useful information Daily and weekly news alerts No Weekly Highlights on 24 April 2025 Key DR developments Artificial intelligence CTJ issues refreshed AI guidance and unveils Copilot Chat for judges: The Courts and Tribunals Judiciary (CTJ) has released updated guidance on the use of artificial intelligence, replacing the December 2023 version. The revision widens the glossary of AI terminology and introduces fresh sections on misinformation, bias, and the quality of datasets. It also brings Microsoft Copilot Chat to judicial office holders via eJudiciary accounts, and confirms that litigants are accountable for AI-generated material put before the courts. For further detail, see: LNB News 15/04/2025 23—Courts and Tribunals Judiciary publishes updated AI guidance and introduces Copilot Chat for judges...

The most common reasons for entering into derivatives are for the purposes of: Speculation — when a party seeks exposure to a given variable, for example taking a view on a commodity’s future price on the assumption it will rise or fall over a chosen period Hedging — aiming to offset exposure to the risk of an unfavourable shift in a variable, or to stabilise expected outcomes over time Arbitrage — seeking to take advantage of price discrepancies (between markets, or within the same market over time) to earn profit or cut costs, or where one participant can reach a price or market unavailable to another, including where prices differ over time Exposure to asset classes — obtaining access to a target market (eg commodities, shares, property) without incurring the expense, complexity and formalities associated with those markets, avoiding the same costs and complications Derivatives are commonly used alongside lending arrangements for hedging purposes in practice. In this context, the primary...

A UK-based purchaser of an overseas business should evaluate the following tax considerations: the prospective overseas and UK tax outlays linked to the acquisition tax-efficient ways to repatriate profits from the overseas entity to the UK buyer a tax-efficient exit strategy maximising the tax-efficiency of the target business This Practice Note is written from a UK tax perspective and also flags typical overseas tax points to address, including reporting, filing and compliance obligations. Local advice should be obtained in each jurisdiction in which the target operates. Overseas and UK tax costs associated with the acquisition of an overseas business The common UK and overseas tax costs relevant to acquiring an overseas business are summarised below. Transfer taxes Share acquisitions may attract local transfer or registration taxes, usually calculated as a percentage of the consideration for those shares, together with notary fees...

This Practice Note explores the principal legal terms typical of social housing finance and what distinguishes them from financing in other sectors. It focuses on standard financial covenants and other sector‑specific provisions, including events of default, together with terms linked to the availability of long‑term fixed rate interest options. For more on social housing finance transactions, see Practice Notes: Social housing entities entering into finance transactions Key deal structures in social housing finance Taking and enforcing security from social housing entities This Practice Note concentrates solely on private not‑for‑profit providers of social housing registered in England (referred to as ‘RPs’), as they comprise the vast majority of private debt finance raised by housing associations to date. It does not cover providers registered in Wales. Financial covenants—introduction The principal financial covenants in social housing finance are: loan to value gearing interest cover (less commonly) net rental income cover from charged properties Loan...

Insert the following as new definitions (if not already included) in the definitions and interpretation clause of the share purchase agreement: 1 Definitions and interpretation Fairly Disclosed • means information [ fully, fairly and accurately ] disclosed [ (relating specifically to the subject matter of the Warranty and without omitting any fact which may render the Warranty and the matter disclosed untrue, inaccurate and misleading) ] and presented with sufficient clarity and detail to allow a buyer to reach a clear, informed and accurate evaluation of the relevant facts, matters or circumstances concerned; Losses • means any and all liabilities, costs, outgoings (including legal expenses), claims, actions, proceedings, damages, fines, penalties, loss of profit [ and Consequential Loss ]; Tax Warranties • denotes the warranties [ and representations ] contained in paragraph [ insert number ] of Schedule [ insert number ], and Tax Warranty refers to any one of them; Warranties • signifies the warranties [ and representations ] included in Schedule [...

1 Sanctions (long form) For clause 1, the following terms are to be interpreted as set out below: Losses means all damages, liabilities, demands, costs and expenses [including all legal and other professional fees, costs and expenses], claims, actions and proceedings [(including all consequential, direct, indirect, special or incidental loss or punitive damages or loss, fines, penalties, interest and loss of profit or any other form of economic loss (including loss of reputation))]; Sanctioned Activity means any activity that falls within sanctions imposed by a Sanctioning Body; Sanctioning Body means the United Kingdom, United States of America, United Nations, European Union and any other applicable local, national or multinational government agency, department, official, parliament, public or statutory person or any government or professional body, regulatory or supervisory authority, board or other body responsible for imposing and/or administering sanctions; Sanctioned Entity means any person or entity that is, or that is owned or controlled directly or indirectly by a person or entity that is,...

Date [ date ] Parties [ name of Owner ] [ of OR incorporated in England and Wales (company registration number [ number ]) whose registered office is at ] [ address ] (Owner) [ name of Developer ] [ of OR incorporated in England and Wales (company registration number [ number ]) whose registered office is at ] [ address ] (Developer) 1 Definitions Adjudication Date – the day on which any adjudicator appointed under HGCRA 1996 to determine a dispute regarding an amount due to: (a) the Developer under this Agreement; or (b) the Building Contractor under the Building Contract; delivers their decision; [ Adverse Rights – any easement, covenant, right or other interest affecting the Property, the release, discharge or variation of which is reasonably required to assist the Works or the use and occupation of the Development; ] [ Adverse Rights Agreement – any document that gives legal effect to the release,...