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Wood 1
	 	
						
Madeline Wood
HRONE| SUITE 603, ORIENTAL CENTER,
699 WEST NANJING RD/ 31 WUJIANG
ROAD, JINGAN DISTRICT, SHANGHAI,
CHINA 200041
United Kingdom
CONTRACT
LAW
Wood 2
	 	
Contents
Non-disclosure
Non-Competition
Non-Solicitation
Data Protection
Contract Termination
Contract Invalidity
Commercial Arbitration
Governing Bodies
3
3
3
3
4
5
5
6
Wood 3
	
UK
Contract
Laws
Non-
Disclosure
Agreements
NDA’s	are	restricted	to	
the	use	of	ideas	and	
information	to	a	specific	
permitted	purpose	
1. Must	be	for	a	specific	
purpose	
2. Can	be	one	way	or	
mutual	
3. If	agreement	is	between	
different	countries	
(including	Wales	and	
Scotland)	the	NDA	will	
need	to	state	which	
courts	of	one	country	
will	be	used	to	enforce	
disputes.	
4. Required	to	reveal	
information	to	public	
authorities	and	legal	
bodies	if	requested	
2000	(RIPA)	
o	Regulates	the	
interception	of	
communications	data	
and	use	of	
surveillance	
• “Misuse	of	Private	
Information”	
o developed	out	of	the	
duty	of	
confidentiality	
Jurisdiction	
• Ordinarily	resident	
individuals	
• UK	registered	companies	
• Partnerships	and	
unincorporated	
associations	governed	by	
UK	law	
• Bodies	that	maintain	an	
office,	branch,	agency,	or	
regular	practice	in	UK	
• Data	controllers	who	are	
not	established	iwthin	
the	European	Economic	
Area	(EEA),	but	sue	
equipment	in	UK	to	
process	the	data	
Exemptions	
• Purposes	of	detecting	
crime,	the	
capture/prosecution	of	
offenders	and	for	the	
assessment/collection	of	
tax	
• Purposes	of	national	
security	
• Regulatory	activies	
• Freedom	of	Information	
Act	
Below	are	the	
requirements	for	non-
solicitation	clauses	in	
Singapore.	
• Designed	to	protect	his	
legitimate	business	
interests	
• Cannot	extend	no	further	
than	is	reasonably	
necessary	to	protect	
those	interests	
• Void	on	the	grounds	that	
it	is	a	restraint	of	trade	
and	contrary	to	public	
policy	
• Must	be	specific	and	not	
broad	
Non-
Competition
Laws
Data
Protection
The	Data	Protection	Act	
1998	(DPA)	and	Directive	
95/46/EC	on	data	
protection	are	the	
general	laws.	
Applicable	Sectoral	Laws	
• The	Privacy	and	Electronic	
Communications	
Regulations	2003	
oElectronic	
communications	
• The	Regulation	of	
Investigatory	Powers	Act	
Non-
Solicitation
Laws
Below	are	the	
requirements	for	non-
solicitation	clauses	in	
Singapore.	
• Can	be	used	as	a	stand-
alone	provision	or	
incorporated	into	a	
written	agreement
Wood 4
	
UK
Contract
Laws
Registration	
• Required	to	file	specific	
information:	
oData	controller’s	name	
and	address	
oA	description	of	the	
relevant	personal	data	
oThe	purposes	for	which	
the	data	will	be	
processed	
Instigate	the	disciplinary	
procedure	
• Informing	the	employee	
of	the	allegations	against	
him	
• Holding	a	disciplinary	
hearing	
• Providing	an	opportunity	
to	appeal	
Protection	Against	
Dismissal	
• An	employee	is	unfairly	
dismissed	unless	an	
employer	can	establish	
that	both:	
oOne	of	these	5:	
§ Conduct	
§ Capability	
§ Redundancy	
§ Breach	of	statutory	
restriction	
§ Some	other	
substantial	reason	of	
a	kind	such	as	to	
justify	the	dismissal	
of	that	employee	
oIt	acted	reasonably	in	
treating	that	reason	as	
sufficient	to	justify	
dismissal	of	that	
employee	
oProtected	Employees	
§ If	dismissal	relates	to:	
§ Political	beliefs	or	
affiliations	
§ His	membership	or	
non-membership	of	
a	trade	union	or	
participation	in	
union	related	
activity	
	
Repudiatory	breach	of	the	
employment	contract	that	
would	be	justifiable.	
Severance	Payments	
• Calculated	in	accordance	
with	a	statutory	formula	
based	on	the	employee’s	
age,	salary,	and	length	of	
service	
• On	termination	
employee	is	entitled	to	
any	amounts	he	has	
accrued	under	the	
contract	that	have	not	
yet	been	paid	
• An	employee	who	has	
the	required	length	of	
service	and	brings	a	
successful	claim	for	
unfair	dismissal	may	also	
be	awarded	a	
compensation	payment	
oA	basic	award	
oA	possible	
compensatory	award	
based	on	an	
employee’s	actual	
and/or	potential	
future	financial	loss	
Procedural	Requirements	
for	Dismissal	
• Employers	should	
comply	with	the	ACAS	
Code	of	Practice	on	
Disciplinary	and	
Grievance	Procedures	
oConducting	a	
reasonable	
investigation	
oDetermining	whether	it	
is	appropriate	to	
Contract
Termination
The	termination	process	
used	in	the	UK.	
• Can	be	used	as	a	stand-
alone	provision	or	
incorporated	into	a	
written	agreement	
Notice	Periods	
• Right	of	all	employees	to	
receive	a	minimum	
notice	
oAn	employee	who	has	
been	continuously	
employed	for	more	
than	one	month	but	
less	than	two	years	
must	receive	at	least	
one	week’s	notice	
oEach	year	after	an	
employee	must	receive	
an	additional	week’s	
notice	for	each	
complete	year	of	
service	(max	12	weeks)	
oAn	employee	may	be	
dismissed	summarily	if	
he	commits	a
Wood 5
	 	
UK
Contract
Laws
§ Participation	in	
health	and	safety	
related	activities	
§ Status	as	an	
employee	
representative	
§ Status	as	a	fixed-
term	employee	or	
part-time	worker	
§ Protected	
characteristic	
possessed	by	the	
employee	or	a	claim	
of	discrimination	
previously	made	by	
the	employee	
§ Protected	disclosure	
made	by	the	
employee	
§ The	employee:	
oTaking	maternity,	
paternity,	
adoption,	parental	
or	shared	parental	
leave	
oTaking	time	off	to	
care	for	
dependents	or	to	
study	or	train	
oExercising	a	
statutory	right	to	
request	a	flexible	
working	
arrangement	
Layoff	
• Employer’s	may	claim:	
oBusiness	closure	
oSite	closure	
oHeadcount	reduction	
• Laid	off	when	his	
Employer	exercises	a	
contractual	right	not	to	
• The	Arbitration	Act	
(1996)	offers	a	coherent	
and	modern	framework	
for	domestic	and	
international	arbitrations	
seated	in	UK	
oInfluenced	by	the	
UNCITRAL	Model	Law,	
but	differs:	
§ AA	is	a	single	
legislative	framework	
governing	all	
arbitrations	seated	in	
England,	Wales,	and	
Northern	Ireland	
Mandatory	Provisions	
• The	court’s	power	to	stay	
court	proceedings	
brought	in	breach	of	an	
arbitration	agreement	
and	related	provisions	
• The	court’s	power	to	
extend	agreed	time	limits	
and	to	apply	limitation	
acts	
• Provisions	dealing	with	
the	arbitrator’s	position	
oPower	of	the	court	to	
remove	the	arbitrator	
oEffect	of	the	
contractual	right	not	to	
provide	him	with	work,	or	
therefore,	pay	during	a	
given	period.	
Contract
Invalidity
Generally,	without	
consideration	a	contract	
shall	be	deemed	invalid	
or,	to	be	more	precise,	
there	will	be	no	contract	
concluded	at	all	
Doctrine	of	
Consideration:	is	a	
traditional	notion	which	
has	existed	in	English	and	
common	law	for	centuries	
• Represents	one	of	the	
main	pillars	of	the	Law	
of	Contract	
• Important	that	the	
requirement	of	
consideration	has	come	
under	constant	and	
strong	criticism	
• Accepting	as	a	postulate	
that	any	significant	
changes	in	law	should	
only	be	initiated	when	
there	is	a	strong	case	for	
them	we	need	to	
investigate	the	reasons	
for	that	criticism	
• Not	present	in	Scotland,	
Germany,	France,	Italy,	
Spain,	Switzerland,	
Japan,	and	Russia.	
Commercial
Arbitration
UK	arbitration	has	a	
neutral	forum	for	
international	disputes	
and	clear	legislative	
framework	and	judicial	
support	for	arbitration.
Wood 6
	
UK
Contract
Laws
Arbitrator’s	death	
oParties	liability	for	the	
fees	and	expenses	of	
the	arbitrator		
oArbitrator’s	immunity	
• General	duty	of	the	
tribunal	to	act	fairly	and	
impartially	
• The	tribunal’s	power	to	
withhold	an	award	for	
non-payment	of	the	
arbitrator’s	fees	and	
expenses	
• The	enforcement	of	an	
award	
• Ground	for	challenging	
an	award	
Remedies	
• Make	a	declaration	as	to	
any	matter	to	be	
determined	in	the	
proceedings	
• Order	a	payment	of	a	
sum	of	money	
• Order	a	party	to	do	or	
refrain	from	doing	
something	
• Order	specific	
performance	of	a	
contract	
• Order	the	rectification	
and	set	aside	or	cancel	a	
deed	or	other	document	
• Award	a	simple	or	
compound	interest	
• Award	punitive	or	
exemplary	damages	
• Allocate	the	arbitration	
costs	between	the	
parties.	
Governing
Bodies
Appeals	can	be	done	via	
local	courts,	but	that	
route	is	difficult	and	
costly	
• London	Court	of	
Internationa	Arbitration	
owww.Icia.org	
• The	Chartered	Institute	
of	Arbitrators	
owww.ciarb.org	
• London	Maritime	
Arbitrators’	Association	
owww.Imaa.org.uk

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United Kingdom Contract Law

  • 1. Wood 1 Madeline Wood HRONE| SUITE 603, ORIENTAL CENTER, 699 WEST NANJING RD/ 31 WUJIANG ROAD, JINGAN DISTRICT, SHANGHAI, CHINA 200041 United Kingdom CONTRACT LAW
  • 2. Wood 2 Contents Non-disclosure Non-Competition Non-Solicitation Data Protection Contract Termination Contract Invalidity Commercial Arbitration Governing Bodies 3 3 3 3 4 5 5 6
  • 3. Wood 3 UK Contract Laws Non- Disclosure Agreements NDA’s are restricted to the use of ideas and information to a specific permitted purpose 1. Must be for a specific purpose 2. Can be one way or mutual 3. If agreement is between different countries (including Wales and Scotland) the NDA will need to state which courts of one country will be used to enforce disputes. 4. Required to reveal information to public authorities and legal bodies if requested 2000 (RIPA) o Regulates the interception of communications data and use of surveillance • “Misuse of Private Information” o developed out of the duty of confidentiality Jurisdiction • Ordinarily resident individuals • UK registered companies • Partnerships and unincorporated associations governed by UK law • Bodies that maintain an office, branch, agency, or regular practice in UK • Data controllers who are not established iwthin the European Economic Area (EEA), but sue equipment in UK to process the data Exemptions • Purposes of detecting crime, the capture/prosecution of offenders and for the assessment/collection of tax • Purposes of national security • Regulatory activies • Freedom of Information Act Below are the requirements for non- solicitation clauses in Singapore. • Designed to protect his legitimate business interests • Cannot extend no further than is reasonably necessary to protect those interests • Void on the grounds that it is a restraint of trade and contrary to public policy • Must be specific and not broad Non- Competition Laws Data Protection The Data Protection Act 1998 (DPA) and Directive 95/46/EC on data protection are the general laws. Applicable Sectoral Laws • The Privacy and Electronic Communications Regulations 2003 oElectronic communications • The Regulation of Investigatory Powers Act Non- Solicitation Laws Below are the requirements for non- solicitation clauses in Singapore. • Can be used as a stand- alone provision or incorporated into a written agreement
  • 4. Wood 4 UK Contract Laws Registration • Required to file specific information: oData controller’s name and address oA description of the relevant personal data oThe purposes for which the data will be processed Instigate the disciplinary procedure • Informing the employee of the allegations against him • Holding a disciplinary hearing • Providing an opportunity to appeal Protection Against Dismissal • An employee is unfairly dismissed unless an employer can establish that both: oOne of these 5: § Conduct § Capability § Redundancy § Breach of statutory restriction § Some other substantial reason of a kind such as to justify the dismissal of that employee oIt acted reasonably in treating that reason as sufficient to justify dismissal of that employee oProtected Employees § If dismissal relates to: § Political beliefs or affiliations § His membership or non-membership of a trade union or participation in union related activity Repudiatory breach of the employment contract that would be justifiable. Severance Payments • Calculated in accordance with a statutory formula based on the employee’s age, salary, and length of service • On termination employee is entitled to any amounts he has accrued under the contract that have not yet been paid • An employee who has the required length of service and brings a successful claim for unfair dismissal may also be awarded a compensation payment oA basic award oA possible compensatory award based on an employee’s actual and/or potential future financial loss Procedural Requirements for Dismissal • Employers should comply with the ACAS Code of Practice on Disciplinary and Grievance Procedures oConducting a reasonable investigation oDetermining whether it is appropriate to Contract Termination The termination process used in the UK. • Can be used as a stand- alone provision or incorporated into a written agreement Notice Periods • Right of all employees to receive a minimum notice oAn employee who has been continuously employed for more than one month but less than two years must receive at least one week’s notice oEach year after an employee must receive an additional week’s notice for each complete year of service (max 12 weeks) oAn employee may be dismissed summarily if he commits a
  • 5. Wood 5 UK Contract Laws § Participation in health and safety related activities § Status as an employee representative § Status as a fixed- term employee or part-time worker § Protected characteristic possessed by the employee or a claim of discrimination previously made by the employee § Protected disclosure made by the employee § The employee: oTaking maternity, paternity, adoption, parental or shared parental leave oTaking time off to care for dependents or to study or train oExercising a statutory right to request a flexible working arrangement Layoff • Employer’s may claim: oBusiness closure oSite closure oHeadcount reduction • Laid off when his Employer exercises a contractual right not to • The Arbitration Act (1996) offers a coherent and modern framework for domestic and international arbitrations seated in UK oInfluenced by the UNCITRAL Model Law, but differs: § AA is a single legislative framework governing all arbitrations seated in England, Wales, and Northern Ireland Mandatory Provisions • The court’s power to stay court proceedings brought in breach of an arbitration agreement and related provisions • The court’s power to extend agreed time limits and to apply limitation acts • Provisions dealing with the arbitrator’s position oPower of the court to remove the arbitrator oEffect of the contractual right not to provide him with work, or therefore, pay during a given period. Contract Invalidity Generally, without consideration a contract shall be deemed invalid or, to be more precise, there will be no contract concluded at all Doctrine of Consideration: is a traditional notion which has existed in English and common law for centuries • Represents one of the main pillars of the Law of Contract • Important that the requirement of consideration has come under constant and strong criticism • Accepting as a postulate that any significant changes in law should only be initiated when there is a strong case for them we need to investigate the reasons for that criticism • Not present in Scotland, Germany, France, Italy, Spain, Switzerland, Japan, and Russia. Commercial Arbitration UK arbitration has a neutral forum for international disputes and clear legislative framework and judicial support for arbitration.
  • 6. Wood 6 UK Contract Laws Arbitrator’s death oParties liability for the fees and expenses of the arbitrator oArbitrator’s immunity • General duty of the tribunal to act fairly and impartially • The tribunal’s power to withhold an award for non-payment of the arbitrator’s fees and expenses • The enforcement of an award • Ground for challenging an award Remedies • Make a declaration as to any matter to be determined in the proceedings • Order a payment of a sum of money • Order a party to do or refrain from doing something • Order specific performance of a contract • Order the rectification and set aside or cancel a deed or other document • Award a simple or compound interest • Award punitive or exemplary damages • Allocate the arbitration costs between the parties. Governing Bodies Appeals can be done via local courts, but that route is difficult and costly • London Court of Internationa Arbitration owww.Icia.org • The Chartered Institute of Arbitrators owww.ciarb.org • London Maritime Arbitrators’ Association owww.Imaa.org.uk