United Kingdom: Contracts and Commercial Law

A Technology and Construction Court ruling has found that payment clauses allowing the final date for payment to shift based on invoice submission timing violate the Housing Grants, Construction and Regeneration Act 1996. The decision resulted in the Scheme for Construction Contracts replacing the contractual payment terms, shortening the payment period from 30 to 17 days and invalidating the employer's pay less notices.

The UK construction industry faces sweeping reforms as the Commercial Payments Bill proposes a complete ban on retentions, caps payment terms at 60 days, and introduces mandatory interest on late payments. With transitional provisions suggesting implementation around 2030, businesses relying on traditional retention practices must begin exploring alternative security mechanisms now.

The Court of Appeal's decision in Burger v Wetherspoons reinforces established principles on vicarious liability and contractor independence. When a security guard employed by a contracted company assaulted a patron, the court examined whether the pub chain could be held liable for the contractor's employee's actions. The case offers critical insights into how businesses can maintain clear boundaries with contractors and effectively transfer risk through outsourcing arrangements.

A construction materials supplier sought to enforce a personal guarantee against a former director for debts arising from a 2013 services agreement, but the director argued the guarantee only covered goods supplied under an earlier 2008 credit facility. The court examined whether the guarantee's broad language extended beyond its original purpose and whether subsequent contractual changes affected the guarantor's liability.

The UK Supreme Court has clarified that damages for loss of bargain may be recoverable even when a contract is terminated under an express contractual right, rather than for repudiatory breach. This landmark decision in Great Asia Maritime Limited v Orion Shipping and Trading LLC examines the interpretation of compensation clauses in standard form contracts and challenges long-held assumptions about the availability of future loss damages following contractual termination.

A judgment handed down Laing O’Rourke v Shepperton Studios in March 2026 has answered a key question concerning construction payment disputes: if a payment notice is defective, does it automatically bring the pay less notice down with it? The Technology and Construction Court (TCC) said no, but its reasoning explains exactly why, and the case carries important lessons for those responsible for managing payments on a construction project.

The Court of Appeal examined a commercial licence lacking a specified end date, distinguishing between indefinite and perpetual contracts. This landmark decision clarifies when parties can terminate agreements on reasonable notice, even when only one party has express termination rights, fundamentally reshaping how English courts interpret contracts without clear termination provisions.

Organisations often hesitate to invest in trade mark watching services due to concerns about unpredictable costs and whether every alert will trigger additional fees. This article examines the structure of trade mark watching services, clarifying what is typically included in the annual fee versus when additional charges may arise, and provides guidance on establishing a cost-effective monitoring framework.

The High Court has reaffirmed strict requirements for serving a valid Notice of Readiness under voyage charterparties, ruling that an invalid NOR cannot start laytime running without clear evidence of waiver or estoppel. This decision provides critical guidance on protecting demurrage claims and assessing when laytime commences in shipping disputes.