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Legal terms explained: Set-off

Set-off is a mechanism that allows a debtor to make a cross claim against a creditor to reduce or extinguish the creditor’s claim. It is commonly used in construction disputes. There are a number of different ways in which set-off can apply.

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International arbitration – an industry perspective

In the latest article in our alternative dispute resolution series Rachel Chaplin of Clyde & Co reviews the findings of a survey into the international use of arbitration. Fears of ‘judicialisation’ have not put people off its use.

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Conditions and warranties in insurance policies

Breaches of warranties can void insurance policies, even if they had no impact on the events leading to claims under a policy, warns insurance expert John D Wright of JD Risk Associates in this review of common conditions and warranties.

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Keeping the faith

Good faith clauses seem to be growing in use, but not all parties seem to be fully aware of their significance, says Vijay Bange of Trowers & Hamlins. Recent cases show the dangers of being over reliant on them.

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Dark clouds lifting

Nick Kramer and Dean Ryburn of Dentons say construction is resurgent in the United Arab Emirates, a traditional stamping ground of UK consultants and contractors. Lessons need to be learned from the last boom as many cases from those days are still in the courts.

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Beware men of straw

Little guidance has been available as to whether net contribution clauses would be upheld by courts in England and Wales. Dileep Pisharody of Hill Dickinson reviews a recent case that gives guidance for the first time – and provides a salutary lesson on the need to be fair and clear when drafting them.

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Good and bad in the IChemE forms

Clients and contractors will both find positive changes in the new IChemE forms; but there are negatives for each as well, warn Rachel Chaplin and Ed Freeman of Clyde & Co, in the second part of their analysis.

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Courts take a grip of costs

Thomas Crangle of 4 Pump Court reports on recent applications by parties to amend costs budgets upwards. The courts’ view is not favourable, and he warns that great care must be taken in preparing costs budgets under the new regime.

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Model form is a model itself

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, praises the JCT’s Model Form of Enquiry Letter as he continues his review of JCT’s new practice note on tendering, focussing on an appraisal of the assessment and award sections.

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Reports from the courts: July 2013

In our latest review of the court cases of most interest to construction Charlie Aitchison and Will Buckby of Beale and Company find confirmation that contracts will be construed by the courts in their entirety in a TCC decision; and a case which may give cause for concern over enforcing large scale adjudications in Scotland.

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