Legal Principles in ADR and Contracts

A pressure group cannot bring an action under the Human Rights Act 1998 as their rights are not directly affected.

A legal executive can undertake reserved legal activities under the supervision of a qualified solicitor. This means they can perform certain tasks, like giving legal advice, but only under the guidance of a solicitor.

A partnership can be held liable for the actions of a partner who acted without actual authority, but appeared to have it. This is called ostensible authority.

A public company must have a company secretary appointed by the company's directors.

A person with significant control over a company is someone who holds more than 25% of the shares or has the right to appoint/remove a majority of the board members.

A contractual term excluding liability can be used for limited liability partnerships. This means the partners can limit their personal liability for certain debts or obligations.

If a bill doesn't have a start date, it comes into force on the day it receives Royal Assent. This is how new laws become enforceable.

Indemnity is a primary obligation, meaning you can sue the indemnifier directly for a loss. Guarantor is a secondary obligation, meaning you can only sue them after pursuing the principal debtor.

A statutory instrument that allows the government to quickly amend laws to remove incompatibility with the Human Rights Act.

A breach of natural justice that occurs when a judge or decision-maker has a personal interest in the outcome of a case, making them likely to be biased.

A legal principle applied to contracts, where the performance of one party's obligations is made impossible due to an unforeseen event.

The period of time within which a claim can be brought in a court of law.

A term in a contract that is neither a condition nor a warranty, where breaching it might allow the innocent party to terminate the contract depending on the seriousness of the breach.

Where a plaintiff can sue all responsible parties for the full amount of damages, even if they were only partially responsible.

A legal principle where multiple possible causes of harm can separately lead to the same result, making all parties responsible for their respective contributions.

A type of cancer that often results from exposure to asbestos, where the plaintiff can sue all possibly responsible parties for the full amount of damages.

Behavior that threatens, abuses, or insults someone using words, writing, signs, or other visible representations. It must be within hearing or sight of the person.

Trespassing on land with the intention to disrupt or intimidate those engaged in a lawful activity, like hunting. Police can direct them to leave.

A group of people behaving violently and disorderly, causing fear and provoking violence.

Someone directly involved in an incident. They don't need to prove psychiatric harm was foreseeable.

Someone who witnesses an event and suffers psychiatric harm as a result. They must show the harm was reasonably foreseeable and they have a close tie to the victim.

A specified investment includes all financial products, like mortgages, but not land.

A specified activity includes dealing, arranging, managing, or advising on investments.

If a lost chance is less than 50%, the court is unlikely to find for the claimant. This rule doesn't apply to clinical negligence.

A contract entered into by a person who lacks the legal capacity to make agreements is considered voidable. This means the contract can be set aside by the person who lacked capacity. However, they may have to pay a reasonable price for any necessary goods or services received. If a minor (someone under 18) is involved, they must return any goods obtained under the contract if it is fair and equitable to do so.

When a court finds that a term is a 'condition', the innocent party has the right to repudiate the contract (treat it as ended) or they can affirm the contract (continue with it).

A breach of warranty only allows the innocent party to claim damages. They cannot end the contract.

An exemption clause covering liability for negligence must be 'fair' in business-to-consumer contracts and 'reasonable' in business-to-business contracts.

A document is considered served on the second day after it was sent. For example, if a document is sent on Monday, it's considered served on Wednesday.

If a claim form needs to be served outside of England and Wales, it must be done within six months of its issue date.

A Tomlin order is a binding agreement reached in a legal case. It's essentially a contract, so if breached, it can be enforced for up to 6 years just like any other breach of contract.

In civil cases, permission to appeal can be granted by either the court of instance (where the original decision was made) or the relevant appellate court (the court responsible for appeals). The permission is granted if there's a realistic prospect of success.

A gain on the sale or gifting of assets that are used in a business by an individual who is also an employee, officer, or shareholder of that business. This is a qualifying business asset disposal for Capital Gains Tax (CGT).

A type of CGT relief that allows you to postpone paying CGT on the disposal of qualifying business assets until you eventually sell them. Applies when transferring ownership of a business asset as a gift or at a significantly undervalued price.

A form of CGT relief that allows you to postpone paying CGT when you sell a qualifying business asset and use the proceeds to buy another qualifying business asset. This helps businesses grow without paying CGT.

A specific instance of Roll-Over Relief where an individual sells any asset, not just business assets, and invests the proceeds into shares of an Enterprise Investment Scheme (EIS).

A form of CGT relief available for gains on the disposal of qualifying shares in unlisted trading companies. It offers a lower tax rate and a higher limit than the standard CGT rate.

An individual is considered insolvent when they owe a debt payable now or in the future and cannot reasonably pay it.

A formal demand for payment of a debt, typically used for a liquidated and unsecured sum of at least £5,000. If not paid within three weeks, it can be used to prove insolvency.

Shows a debtor's inability to pay within three weeks of a statutory demand being served, meaning the debt remains unpaid despite a formal request for payment.

A debt following a court judgement. It is usually harder to avoid paying as the court has already decided the money is owed.

A process where individuals owed money to a bankrupt person receive a portion of what they are owed, in an order of priority.

A binding agreement between a debtor and their creditors, where the debtor repays their unsecured debt over time. This is often a way to avoid bankruptcy.

A court order that allows an individual to wipe out their unsecured debts. It is only available for people with limited assets and income.

A way to avoid bankruptcy where an individual makes a formal application to the courts to be discharged from debt. This is often used for those with limited debt and assets.