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Substitute meaning

What does Substitute mean?
In legal practice, a substitute is a product or service that customers would switch to if the focal product’s price increased, quality declined, or other non-price factors changed, thereby constraining the supplier’s market power. “Substitute” is a descriptive economic concept used across competition law rather than a statutory term. Its meaning is reflected in UK and Irish case law and in guidance from authorities such as the CMA, the CCPC and the European Commission on market definition. Substitutability is assessed primarily by demand-side evidence (how and why customers switch) and, where appropriate, by supply-side responses (whether suppliers can switch production quickly and without significant cost or risk). Common tools and indicators include the hypothetical monopolist/SSNIP test, diversion ratios, switching data, customer surveys, internal documents, and price correlation. Non-price drivers—such as functionality, innovation, interoperability, brand, service, availability, and switching costs—are also relevant. The concept is central to defining the relevant product market and to assessing mergers, abuse of dominance, anticompetitive agreements, market studies and private damages. Approach is broadly consistent across England & Wales, Scotland and Northern Ireland (UK competition law/CMA guidance) and Ireland (aligned with EU law), with demand-side substitution considered first.
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View the related Checklists about Substitute

CHECKLISTS
CPR Part 24 summary judgment (England and Wales): practical checklist on availability, alternatives, timing, evidence, service and draft orders

This Checklist sets out a structured route to follow when preparing to issue a summary judgment application. It is guided by the detailed material in the following Practice Notes and is intended to supplement, rather than substitute, that guidance: Summary judgment applications—what, who and when Summary judgment—general principles Summary judgment—making an application Determining whether summary judgment is the appropriate application to make Is summary judgment available in this type of proceedings? In some proceedings, summary judgment is restricted or not permitted—see Practice Note: Summary judgment applications—what, who and when. On what basis do you say the proposed respondent’s case lacks a real prospect of success? Keep this question foremost—if you cannot state the point with clarity, it may indicate summary judgment is not the proper course. See Practice Note: Summary judgment—general principles...

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CHECKLISTS
Insolvency reviews and appeals: practical checklist for rescinding bankruptcy and winding-up orders and pursuing appeals (England and Wales)

Reviews In insolvency cases, a review occurs when the court returns to and considers an order it has previously made. This mechanism (across corporate and personal insolvency) permits the decision to be reconsidered either by the judge who issued it (see Official Receiver v Bathurst) or also by a different judge (see Re W & A Glaser Limited). Both personal and corporate insolvency courts hold power to review, rescind, or vary their own orders (section 375 of the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 12.59(1)). A review should not be treated as a substitute for an appeal, and the court will deploy its discretion with particular caution when asked to formally revisit an order. For more detail, see Practice Note: Reviews of insolvency orders. General The table below addresses reviews of any order, other than a winding-up or bankruptcy order, made by the insolvency court. Step/action Time Authority 1...

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CHECKLISTS
EPA Registration Checklist: Validity, Capacity, Notices, EP1PG/EP2PG and OPG Procedure – England and Wales

This checklist outlines the steps to successfully register an enduring power of attorney (EPA). These steps include verifying that the EPA was valid when created and is still valid, assessing the donor’s mental capacity, and notifying the relevant parties of the intention to register the EPA and the application for registration. Ensuring that the enduring power of attorney was valid when created Make sure the power: is in the form prescribed by law at the time the donor executed it and, when executed by the donor, incorporated the explanatory information prescribed at that time, and that none of the following statements has been omitted: that the donor intends the power to continue in spite of any supervening mental incapacity that the donor has read, or had read to them, the information explaining the effect of creating the power that the attorney understands the duty of registration was executed in the prescribed manner...

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FLOWCHARTS
Section 423 Insolvency Act 1986 (England and Wales and Scotland): Flowchart of Requirements and Claim Steps for Transactions Defrauding Creditors

This flowchart sets out the process under the FIDIC Red, Yellow and Silver Books, 1999 editions, for defects under: clause 7.5, where Plant, Materials, design or workmanship are discovered to be faulty or otherwise non-compliant with the Contract, and the Employer rejects the relevant Plant, Materials, design or workmanship clause 7.6, when the Employer directs the Contractor to strip out and substitute any non-compliant Plant or Materials, to take out and reperform any other work that does not meet the Contract, or to carry out any work urgently needed to protect the safety of the Works clause 11.1, under which the Contractor must perform all tasks necessary to make good defects or damage, as notified by the Employer on or before the end of the Defects Notification Period clause 12.3, if a Test after Completion is not passed, and clause 11.1(b) concerning the rectification of defects applies (Yellow and Silver Books only) For further details, see Practice Note: FIDIC Contracts (pre–2017...

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NEWS
Manolete v Howarth: s238/239 claims fail — CVA‑advised salary‑to‑loan repayments upheld; documentation gaps undermine application (England and Wales)

Manolete Partners Plc v Howarth [2025] EWHC 2294 (Ch) What are the practical implications of this case? This judgment marks a significant victory for company directors and a sharp reminder to office‑holders and those pursuing claims on their behalf: contemporaneous records are paramount. The court condemned the failure to retain and produce meeting notes, emails and working papers, noting that gaps in the paper trail can justify adverse inferences. Insolvency practitioners should, therefore, keep meticulous files of the advice provided and the decisions taken. The court also affirmed that directors are entitled to place reliance on insolvency specialists’ guidance. Where a director behaves openly and follows the directions of a CVA supervisor, later accusations of preference or undervalue are harder to sustain. The evidential onus accordingly returns to the applicant, who must prove misconduct with cogent evidence. Further, the ruling indicates that salary‑for‑loan‑swap arrangements can be valid and commercially rational where structured to minimise PAYE/NIC and where they substitute, rather than add to, salary. Finally, the decision sounds a...

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NEWS
England and Wales TCC guidance on replacing experts after solicitors’ impermissible interference with CPR 35 joint statement: factors for permission (Glover v Fluid Structural Engineers)

Replacement of an expert witness following impermissible interference by solicitors (Glover and another v Fluid Structural Engineers & Technical Designers Ltd and others) Glover and another v Fluid Structural Engineers & Technical Designers Ltd and others [2024] EWHC 1257 (TCC) What are the practical implications of this case? On the claimants’ own account, their solicitors were deeply involved in crafting the expert’s joint statement. Mr Lofthouse KC accepted that this interference arose from a misunderstanding rather than any wilful flouting of the governing principles, and the claimants acknowledged the conduct was improper. Paragraph 13.6.3 of the TCC Guide states clearly that a party in breach may, as occurred here, compromise its ability to rely upon its own expert’s views. Mr Lofthouse KC then addressed the claimants’ request to instruct a new expert. From that consideration, the following practical points can be drawn regarding applications to substitute experts: the significance of the evidence to the dispute—here, structural engineering testimony was described as ‘central’, and without...

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NEWS
Employment law weekly: Mercer on TULRCA s 146, whistleblowing detriment, confidentiality injunction, JCG 17th edition, food delivery right to work checks, levy transfers, ET/EAT updates, pensions pot for life

In this issue: Status and worker categories Employment tribunal equality claims Whistleblowing Individual rights arising from union membership Confidentiality, duties and restrictions: enforcement Employment tribunals Employment Appeal Tribunal Pensions LexTalk®Employment: a Lexis®Nexis community Daily and weekly news alerts Dates for your diary Trackers Status and worker categories Food delivery companies to introduce right to work checks for substitute drivers The Home Office has stated that, following discussions with the UK government, Deliveroo, Just Eat and Uber Eats plan to curb misuse of driver account sharing by their drivers. Each platform has agreed to implement new procedures enabling verification that any substitute couriers have permission to work in the UK. All three companies have reiterated plans to roll out checks to confirm substitutes’ legal right to work. Deliveroo has already begun, adding right to work screenings for substitutes at the registration stage earlier this month. See: LNB News 30/04/2024 76. Department...

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PRACTICE NOTES
Lasting Powers of Attorney: Introductory Training Slides for Junior Lawyers Covering Types, Statutory Framework, Creation, Attorneys' Duties and Powers, Restrictions, Registration, Revocation and Reforms

Follow the link below to download the training presentation: Contents What is an LPA? Property and financial affairs LPAs Health and welfare LPAs Legal foundation for LPAs How to make a valid LPA Attorneys Substitute attorneys Certificate provider Persons to be notified Responsibilities of attorneys Powers held by attorneys Statutory restrictions on...

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PRACTICE NOTES
Cryptoassets: economic benefits, operational limits, and legal/regulatory risks—consumer protection, AML/CTF, security, volatility and environmental impact

What are cryptoassets? One difficulty in grasping non-traditional money and assets is the inconsistent terminology. Regulators, tax bodies and commentators speak of digital currencies, virtual currencies, cryptocurrencies, cryptoassets and crypto tokens, and it is often uncertain whether the labels are being swapped freely or used with their distinct meanings in mind. For definitions, see Practice Note: Web 3.0, digital assets and cryptoassets—essentials. That Practice Note considers the benefits and drawbacks of using cryptoassets. A range of advantages helps explain their rapid rise in popularity, but these must be weighed against risks inherent in the cryptoasset. Pros of cryptoassets Below are some of the advantages of cryptoassets (notably when used as a fiat currency substitute): lower transaction costs compared with transfers of real currency and assets transparent costs and charges—hidden fees and extra charges common in other online payment methods are absent in Bitcoin transactions contribution to the economy and access to markets that were historically inaccessible quicker, more efficient processing of......

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PRACTICE NOTES
Terminating Commercial Contracts: Grounds, Procedures, Notices, Statutory Restrictions, Remedies and Post-termination Considerations

Termination—contractual and common law rights As commercial solicitors, we are commonly engaged to advise on setting up a commercial relationship. While we, much like family practitioners preparing pre-nuptial agreements, often consider the consequences of a relationship ending, only in more recent economic conditions are we more frequently asked how to unwind the relationship in the first place. It is vital to remember that a right to terminate may arise at common law (for example, for repudiatory breach) as well as under the contract’s express terms. Where an agreement is silent on termination, the courts will, in any dispute, apply common law principles. To minimise uncertainty, parties typically include clear contractual provisions dealing with termination. As a general rule, contractual termination rights are additional to, and not a substitute for, common law rights. In the absence of wording to the contrary, the default assumption is that an express contractual right to terminate does not exclude termination at common law (see, for example, Kulkarni v Gwent Holdings Ltd)...

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PRECEDENTS
Adapting share purchase agreements to Scots law: drafting amendments, CTPRS third party rights, assignation, execution, governing law, and Scottish property warranties and schedules

Date provision Substitute the date clause in the share purchase agreement (SPA) with the following updated wording to read: This Agreement is delivered on [ insert day and month ] 20[ insert year ] Recitals Recital (B) Remove ‘legal and beneficial’ from Recital (B) entirely. Definitions Revise the following existing definitions set out in clause 1 (Definitions and interpretation) of the relevant precedent SPA (where used in the SPA): Definition of ‘Business’ Replace ‘the City of London’ with ‘[ Edinburgh OR Glasgow OR Aberdeen ]’ instead. Definition of ‘CRTP’ Replace the definition of ‘CRTP’ with the following new definition: CTPRS means Contract (Third Party Rights) (Scotland) Act 2017; Definition of ‘Encumbrance’ Delete ‘assignment’ immediately preceding ‘right of first refusal’, as Scots law uses assignation rather than assignment. Delete ‘legal or equitable’ immediately preceding ‘third party right’, as Scots law does not recognise this separation of ownership...

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PRECEDENTS
Notice and insurer acknowledgement of assignment by way of security of insurance policy proceeds (single company assignor; bilateral; specific monies) — England and Wales

Notice of assignment [ To be printed on the headed notepaper of the assignor ] To: [ insert name and address of the relevant insurer ] Date: [ • ] Dear [ insert organisation name ], [ insert brief description of the relevant insurance policy ] We refer to the assignment of insurance policies (the ‘Assignment’), dated [ • ], entered into by us as assignor (the ‘Assignor’) in favour of [ insert name of lender ] (the ‘Lender’). We also refer to the insurance policy placed by us as the policy holder, with you as the insurer, concerning [ insert brief description of relevant policy and risks covered ], with policy number [ • ], together with any policy arranged to renew, substitute or replace that insurance (the ‘Insurance Policy’). Please take notice that, pursuant to the terms of the Assignment, we have assigned to the Lender, by way of security, all rights and claims that may from time to time...

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PRECEDENTS
Consultancy agreement precedent (company–individual consultant), pro‑client — England and Wales — substitution, IP assignment, confidentiality, data protection, anti‑bribery, tax evasion and fraud prevention, termination and post‑termination restrictions

Stop press: The Data (Use and Access) Act 2025 (Commencement No 6 and Transitional and Saving Provisions) Regulations 2026, SI 2026/82 bring the remaining elements of the Data (Use and Access) Act 2025 (DUAA 2025) into operation. Measures addressing subject access requests, legitimate interests, purpose limitation, automated decision-making, international transfers and enforcement apply from 5 February 2026, while the provisions on penalty notices and complaints apply from 19 June 2026. For further details, see Practice Note: Data (Use and Access) Act 2025—employment implications. This Precedent will be revised shortly to reflect these updates. This Agreement is entered into on [ insert date ] Parties [ Name of Company ], a company incorporated in England and Wales with registered number [ insert company number ] whose registered office is at [ insert address ] (the Company); and [ Name of consultant ], of [ insert address ] (‘ you ’). Background (A) You operate in the business of [ insert description...

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Q&As
Septic tank prescriptive right: treatment plant and contributions

This query asks whether the owner of the land (the servient owner) on which a septic tank currently sits, and across which a neighbour has acquired prescriptive drainage rights, is entitled to replace that tank with a modern treatment unit, and whether the neighbour benefiting from those rights (the dominant owner) can be obliged to contribute to the costs of installing and maintaining the replacement apparatus. Can the servient owner replace the tank? On the basis that the dominant owner holds a prescriptive right to drain into the septic tank (as stated), the initial issue is the servient owner’s entitlement to substitute the existing septic tank with a contemporary equivalent. Provided the works are organised so that the neighbour’s drainage rights are not hindered to an actionable extent, both during installation and thereafter, there is, in principle, no reason to object to the servient owner upgrading their own installation in this manner...

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Q&As
LPA attorneys: probate or renounce - incapacitated sole executor

This Q&A assumes that there are no substitute executors. Under the Non-Contentious Probate Rules 1987, SI 1987/2024, r 31, it sets out that a lawfully constituted attorney for a person entitled to a grant may seek administration for the use and benefit of the donor; any such grant must be restricted until further representation is issued, or otherwise as the registrar or a district judge directs. Hence, while an attorney is permitted to apply for a grant, there is no duty upon them to do so...

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Q&As
Can LPA attorneys renounce probate to enable substitute executor?

Mental incapacity of executor Mental capacity may justify excluding an executor from probate (see Evans v Tyler (1849) 163 ER 1266 at [131] (not reported on LexisNexis®)). The position for a sole executor who is incapacitated is governed by the Non-Contentious Probate Rules 1987 (NCPR 1987), SI 1987/2024, r 35... Under the NCPR 1987, SI 1987/2024, the usual course is for the district judge or the registrar to issue a grant of administration (formerly termed a ‘durante dementia’) for the use and benefit of A, to continue until further representation is granted or otherwise as the district judge or registrar directs. See also NCPR 1987, SI 1987/2024, r 31... Further, r 35(2) of the NCPR 1987, SI 1987/2024, prescribes the order of priority for a grant where the executor lacks mental capacity...

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