Legal Practice Notes

This Practice Note This Practice Note explores the restraint of trade doctrine and the circumstances in which lawful exceptions may arise within employment. It assesses when the doctrine is engaged and reviews instances of indirect limitations or covenants, together with related payments and how the courts have approached them. It also addresses when a post-termination restriction (that is, a restrictive covenant) will be lawful. Pensions Profit-share Bonus Commission Training costs Retention bonuses Garden leave Share options At common law, the core principle is that a person is entitled to pursue their trade or profession when, where and how they choose. As articulated in Nordenfelt by Lord Mac Naughton, both the public and the individual benefit from the free exercise of trade; interference with liberty in trading, and restraints of trade as such, absent further...

This Practice Note examines releasing a guarantor by mutual agreement between the parties, but stresses that there are several other situations in which the liability of a guarantor of one or more borrowers’ obligations under a loan facility (the ‘guaranteed obligations’) will come to an end. For instance, the guarantee may cease because: the borrower has satisfied the guaranteed obligations and the guarantee is discharged, or the guarantor has paid under the guarantee—for more information, see Practice Note: Discharging guarantees by repayment or performance and clawback considerations the guarantor has served notice revoking the guarantee—for more information, see Practice Note: Voluntary revocation of guarantees by the guarantor giving notice to the lender circumstances arise that discharge, extinguish or reduce the guarantor’s liability under the guarantee—for more information, see Practice Note: Guarantor protections and how to exclude them in...

This Practice Note outlines the key principles on reinstatement in property insurance. What is reinstatement? Reinstatement means repairing or replacing property so that it is restored to its pre-loss condition, or to a state that is materially equivalent. The drafting of reinstatement clauses differs from policy to policy and can lead to markedly different outcomes for the policyholder. Depending on the exact wording, the policyholder may or may not receive a cash settlement, may or may not be obliged to rebuild, and may or may not have to rebuild on the same site. Many policies also give the insurer the option to reinstate. Who does it? Typically, the policyholder undertakes the reinstatement. However, numerous policies allow the insurer, at its election, to carry out the reinstatement. Why might an insurer choose to do so? Insurers may have several reasons for electing to reinstate themselves rather than allowing the...

The general rule—no compensation unless there is a recognised psychiatric illness It is not unusual for those injured in accidents to experience marked distress following the event or harm, especially where the incident was extremely serious or involved a death. However, as a general position, that distress alone will not justify a separate head of loss for psychiatric injury unless it amounts to a recognised psychiatric illness. Consequently, determining whether a claimant has indeed sustained a recognised psychiatric condition is a matter of real significance. Settling this point promptly has two clear advantages: first, it ensures the claim advances on the proper footing and the claimant receives full compensation; and second, it enables the rehabilitation code to be deployed so that a claimant who stands to gain clinically from psychological or psychiatric treatment can access it at the earliest...

This Practice Note explains the limits on pre-charge bail, when it can be extended, and the process for doing so. For more on police bail, see Practice Note: Police bail. For guidance on bail representations, see Practice Note: How to make representations for bail at the police station. Pre-charge bail, whether conditional or not, is restricted by time limits known as the applicable bail period ( ABP). The ABP is the window in which an officer, or the court, may extend bail. Once that period ends, there is no power to extend pre-charge bail. The ABP is set by the Police and Criminal Evidence Act 1984 ( PACE 1984), with statutory guidance that custody officers must have regard to; see the government’s Pre-charge bail statutory guidance. Whatever the prosecuting authority, the custody officer authorises the initial ABP. The ABP is separate from a...

This Practice Note outlines: the various forms of share security the principal enforcement options available to security holders practical factors for security holders when choosing appropriate enforcement mechanics further considerations for security holders depending on the context Forms of share security There are three primary categories of security that can be created over shares: (a) a charge, (b) a legal mortgage and (c) an equitable mortgage, each considered below. Historically, a pledge over shares was also possible. A pledge involves delivering possession of an asset as security for the repayment of a monetary debt. This was feasible where bearer shares existed. However, from 26 May 2015, under section 779 of the Companies Act 2006, companies have been prohibited from issuing bearer shares. Holders of bearer shares were granted until 26 February 2016 to surrender them and convert into registered shares (for further...

The powers of the police to enter and search premises Police powers to go into and search premises are wide-ranging and take several forms. Officers can search on the strength of a court-issued warrant, or proceed without a warrant where particular statutory powers allow. A significant portion of these powers is regulated by Part II of the Police and Criminal Evidence Act 1984 ( PACE 1984) and by Code B within the PACE 1984 Codes of Practice. Searches without a warrant of premises linked to an arrest, whether made at the time or afterwards, are contained in PACE 1984, sections 18 and 32, and are the focus of this Practice Note. In addition, section 17 of PACE 1984 provides authority to enter and search without a warrant for the purpose of arresting a person. Guidance on obtaining search warrants under PACE 1984, sections 8 and 9, can be...

The Party Wall etc Act 1996 ( PWA 1996) sets the rules for how a building owner sharing a boundary with an adjoining owner may undertake works. This Practice Note summarises the functions of the PWA 1996; for fuller guidance, see Practice Note: Party Wall works—notices, disputes and awards. Purpose of the Party Wall etc Act 1996 The PWA 1996 applies where a building owner intends to: carry out works to existing party walls or structures erect a new wall or structure on the boundary line with an adjoining property, or excavate within three or six metres of an adjoining building or structure (depending on the depth of the works) The Act grants building owners rights to do works to party walls that would otherwise amount to trespass on neighbouring property, or create a risk of liability for the tort of...

STOP PRESS : Please note that the President of the Family Division, Sir Andrew Mc Farlane, has released new guidance taking effect from 12 January 2026: President of the Family Division’s Guidance 2026 Non- Molestation Orders under the Family Law Act 1996 ( FLA 1996). This supersedes the Practice Guidance on non-molestation injunctions under FLA 1996 issued on 14 July 2023 and incorporates two annexes, together with: An updated template for a non-molestation order under FLA 1996, s 42 Form FL435 ( Response to a non-molestation order) In addition, the Family Justice Council has published its Family Justice Council Best Practice Guidance for Practitioners on Making an application for a Protective Injunction under the Family Law Act 1996, which contains a Model Witness Statement with guidance notes at Annex 1. This Practice Note has been revised to reflect these...

Civil recovery of property, which represents criminal property derived from unlawful conduct Civil recovery denotes the powers contained in Part 5 of the Proceeds of Crime Act 2002 ( POCA 2002) that allow property to be frozen and orders obtained to recover property representing criminal property generated by unlawful conduct. This Practice Note focuses on the use of the following orders: civil recovery orders ( CROs) property freezing orders ( PFOs) interim receiving orders ( IROs) Provisions that apply specifically to Scotland and Northern Ireland are outside the scope of this Practice Note. For guidance on recovering property within criminal proceedings, see Practice Note: Confiscation under the Proceeds of Crime Act 2002. POCA 2002 also provides a range of investigative powers that an appropriate officer may deploy in the course of a civil recovery...

This Practice Note reviews particular case management rules and requirements for matters assigned to, and advancing on, the small claims track. For small claims track matters, the core framework is largely contained in CPR 27 and CPR PD 27A in particular. This Practice Note should be read alongside the following: Track specific case management—overview Practice Note: Case management of civil claims under the CPR Precedent: Small claims track standard directions For details on the types of disputes that are likely to fall within the small claims track, see: Allocating and transferring proceedings—overview Practice Note: Case management—allocation—the different case management tracks Small claims and the CPR Cases proceeding on the small claims track are termed small claims and are regulated by CPR 27 and CPR PD 27A in practice. Parties on the small claims track often appear in person (ie, litigants in...

This guide outlines the rules and requirements for the execution of deeds across multiple international jurisdictions. A table offers a quick-reference overview and summary of the execution formalities for companies, individuals and partnerships in a range of countries. Further detail on each overseas jurisdiction listed in the table appears in the sections that follow, including any variations in limitation periods for claims under contracts made as a deed. Each section corresponds to the overseas jurisdictions shown in the table for reference. For the execution of contracts across jurisdictions, see Practice Note: Execution of contracts—jurisdictional guide. For electronic signatures in different jurisdictions, consult Practice Note: E-signatures—jurisdictional guide. For the formation of contracts across jurisdictions, refer to Practice Note: Contract formation—jurisdictional guide. For the execution of documents under Scots law, see Execution— Scotland—overview. Note that this is an introductory resource only; seek local advice from...

Why is it important to establish the planning unit? Under section 57 of the Town and Country Planning Act 1990 ( TCPA 1990), planning permission is needed for the carrying out of any development of land. ‘ Development’ is set out in TCPA 1990, s 55(1), as meaning: the execution of building, engineering, mining or other operations in, on, over or under land, or the undertaking of any material change in the use of any buildings or other land Accordingly, the TCPA 1990 governs two separate forms of development by requiring planning permission for both operational development and material changes of use. See Practice Notes: Operational development and Material change of use. In determining whether a proposal amounts to a material change of use, the courts apply the planning unit concept in order to identify the relevant area of land for assessing the primary use (and any...

The basic rule at common law is that when the term of a lease expires, any underlease falls away automatically. There are, nonetheless, recognised exceptions. This Practice Note addresses surrender, merger, surrender coupled with the grant of a fresh lease, operation of a break in a lease or headlease, tenant-side considerations, security of tenure, forfeiture of a lease or headlease, and whether a sub-tenant or undertenant can apply for relief from forfeiture. Consensual termination—surrender or merger Statute steps in upon the surrender of a lease. As a consensual ending, the tenant’s estate is treated as transferring to the landlord, but subject to the undertenant’s rights. A merger has the same effect. The underlease continues, and the landlord assumes both the benefits and burdens of the covenants in the underlease. Consensual termination—surrender and grant of new lease The same position applies where the lease is...

Unless an option agreement or contract expressly permits extra time, the deadline must be observed strictly. It cannot be prolonged by reliance on equitable doctrines, and the buyer cannot alter the contract terms unilaterally. Any extension must arise through waiver or an express agreement. Only a clear waiver or explicit agreement will suffice. The seller (or, in uncommon situations where the time limit exists solely for the buyer’s benefit—for example, a condition requiring the seller to secure planning permission by a set date) may waive the right to demand performance by the specified date and grant more time. For further guidance on the necessity of a long-stop date, see Practice Note: Option agreements—land—the need for a long-stop date. Waiver Waiver operates to replace the original deadline with the newly extended period, standing in place of the initial time limit for...

This Practice Note examines how foreign judgments are recognised and enforced under the common law framework. It outlines the need to commence fresh, separate enforcement proceedings in the courts of England and Wales, using the foreign judgment itself as the claim or cause of action. It details the requisite procedural criteria and the usual defences that might be advanced by a defendant to a claim seeking recognition and enforcement of a foreign judgment. The Practice Note also addresses if security for costs can be obtained, and whether a stay ought to be ordered while additional hearings proceed in the foreign court abroad. For further direction on relevant defences used to oppose enforcement of a foreign judgment, see Practice Note: Enforcing foreign judgments—common law defences. To decide if the common law governs enforcement of the foreign judgment, consult: Which regime applies to enforce a...

Electronic signatures This Practice Note sets out the legal position on electronic signatures—also called digital signatures, e‑signatures, E‑ Signatures, e Signatures, paperless signing or electronic document signing. It explains the categories of electronic signature and the technology used to generate digital signatures, including public key infrastructure ( PKI). It reviews key UK legislation such as the Electronic Communications Act 2000 ( ECA 2000) and the UK e IDAS Regulation, and outlines best practice for executing documents by electronic means. An electronic signature functions as the digital counterpart to a handwritten signature, connecting an individual with the contents of an electronic document. The Note focuses on the general law in England and Wales for commercial contracts in a business‑to‑business context. Readers should be aware that particular transactions may present distinct issues, for example due to laws applicable to consumers. For practical guidance on signing when one or more...

Electrical Equipment ( Safety) Regulations 2016 The Electrical Equipment ( Safety) Regulations 2016 ( EE( S) R 2016), SI 2016/1101, form the framework of regulation overseeing the safety of electrical equipment placed on the UK market. Aligned with the EU New Legislative Framework, they set obligations on product conformity, accreditation and market surveillance, with compliance evaluated and enforcement undertaken in line with UK statutory provisions by UK market surveillance authorities. The Department for Business and Trade has produced a range of product safety guidance covering England, Wales and Scotland, which should be essential reading for lawyers advising on electrical equipment supplied to the market. Available guidance includes: Statutory guidance— Electrical Equipment ( Safety) Regulations 2016: Great Britain Placing manufactured goods on the market in Great Britain Product safety for businesses: A to Z of industry guidance Using the UKCA marking Where a business intends to place electrical equipment on the EU...

This Practice Note covers: the impact of an insolvency process on ongoing litigation where the debtor, bankrupt or insolvent company is a claimant or defendant how an insolvency process interacts with an arbitration agreement binding the debtor, bankrupt or insolvent company additional considerations in a cross-border setting Personal insolvency What happens when the bankrupt is a claimant in ongoing proceedings? The presentation of a bankruptcy petition, whether by a creditor or by the debtor, has no legal consequence for proceedings already on foot where the debtor is the claimant. Once a bankruptcy order is made and a trustee in bankruptcy (the trustee) is appointed, most causes of action in which the bankrupt has an interest vest in the trustee under section 306 of the Insolvency Act 1986 ( IA 1986). In such circumstances, it is the trustee, rather than the bankrupt, who has standing to carry on the claim. The...

Employee benefit trusts ( EBTs) are a form of discretionary trust created primarily to allow companies to deliver shares, cash or other rewards to employees within the workforce. They are frequently used to underpin employee share plans and to promote broader employee share ownership. For broader background on EBTs, see Practice Note: What is an employee benefit trust? This Practice Note considers how private company sales can affect EBT share arrangements and the practical hurdles for businesses running them in practice. It explores the potential consequences for EBT-held shares where a private business is sold, and highlights key practical considerations for companies that operate such trusts. Note that further complications may emerge where share trading occurs on a PISCES. For more on this, see Practice Note: PISCES and share incentive arrangements in...