Contract Killers – Episode 1 – Getting into contracts without knowing it

In this fictional account, the lawyers at Bircham Dyson Bell point out some of the ways in which commercial contracts can go wrong and how to avoid them.

In fact, there are quite a few “contract killers”.  Being aware of them and knowing how to avoid them will save you problems.  In order to illustrate some of the danger areas we recount a series of imaginary events that took place at the equally imaginary Pallister Hall Limited.  Although the events and players are all fictitious they are based on actual events that Bircham Dyson Bell have advised on or reported cases.

Pallister Hall Limited is a private limited company which owns and runs Pallister Hall, an historic country house used as a residential conference centre and event venue.  The venue is equipped to provide excellent IT services including Wi-Fi in all meeting rooms and guest accommodation, has a golf course, fitness centre and provides catering services through its contract caterer.

Continue to read the episode by clicking here.

© Bircham Dyson Bell, Solicitors. For more information please contact PaulVoller@bdb-law.co.uk quoting reference “UKBA”

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Banks block £1bn fund for small business

Investment banks upset over the Government’s attacks on City bonuses are holding up a £1 billion fund for small business. Some high street banks are also stalling over claims that the fund is being created to boost Labour’s chances at the next election.

The tension between the banks and the Government over the Treasury’s windfall tax on bonuses came to a head in the run-up to the Pre-Budget Report last week. The Chancellor had been expected to announce a significant contribution to the fund from a number of top investment banks operating in the City.

Gordon Brown announced plans at the Labour conference in September for a National Investment Corporation (NIC) to support small businesses struggling to obtain lending from commercial banks. It was intended to have £1 billion of funds to invest in its growth fund, £200 million of which was to come from eight overseas investment banks operating in the City, said to include Citigroup, Goldman Sachs and Morgan Stanley. Each was to have contributed £25 million.

Full article: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6961138.ece

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Barclays to lend £150m of ‘cheap’ money to small firms

The cash, which comes from the European Investment Bank, will cost 2.5 percentage points less than Barclays’ normal interest rate and is available to companies with fewer than 250 staff from today.

The discount, which businesses will receive as an up front cash payment, is substantial because the European Investment Bank (EIB) is backed by the European Union and can borrow money more cheaply the high street banks.

Full article: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6834983/Barclays-to-lend-150m-of-cheap-money-to-small-firms.html

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FPB responds to Payment Council decision to phase out cheques

The FPB understands many business owners, voluntary groups and other cheque users may have serious concerns over the move.

However, the small business support and lobby group believes gradually phasing out cheque payment can be a relatively painless process if the banks come up with a simple and convenient alternative.

FPB Policy Representative Matthew Goodman said: “Around half of our members still use cheques and we fully appreciate that many individuals, particularly older people, rely on their chequebooks to make payments.

Full article: http://www.fpb.org/news/2284/FPB_responds_to_Payment_Council_decision_to_phase_out_cheques.htm

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Broadband tax could hurt small firms

Small businesses could be worst hit by the government’s proposed Landline Duty, after further details were released in a new consultation paper issued by the Treasury.

The so-called Broadband Tax will charge homes and businesses 50p per line, meaning that small firms with multiple lines could be charged more than larger corporations, which often have fewer, higher capacity connections.

The consultation paper, Implementing a Landline Duty: consultation on draft legislation and impacts, admitted that there would be an “imperfect relationship between the amount of duty paid and the size of the business in terms of number of employees”.

“Large firms usually have bespoke telecommunication solutions. For example, large offices or call centres may only have a single high capacity fibre connection and therefore could pay as little as 50p per month,” the consultation explained.

When it comes to small businesses, however, the report admits that companies with “comparatively few employees” could have several copper lines for which they will need to pay.

The Duty will have to be paid on any lines that are made available to firms, even if they are not used.

One bit of good news for businesses is that, where a single provider offers broadband and voice services through separate cables, the customer will not be charged twice.

Source: http://www.v3.co.uk/v3/news/2255144/government-landline-duty-hurt

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Online retail spending to treble by 2020

The internet will account for one in every five pounds of British retail spending by 2020, when online sales of electricals and books will overtake purchases made in store for the first time, according to a new study.

Retail researchers Verdict, in a study for online marketplace eBay, forecast on Friday that British online retail spending would more than triple to 67 billion pounds ($110 billion) in 2020 from 21 billion in 2009.

Over the same time, spending outside the internet would fall to 247 billion pounds from 265 billion pounds.

Full article: http://smallbusiness.uk.reuters.com/2009/12/18/online-retail-spending-to-treble-by-2020/?rpc=401

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Unfair dismissal compensation cap falls

The maximum amount that an Employment Tribunal can award in compensation for unfair dismissal has fallen for what is believed to be the first time.

The maximum award falls from £66,200 to £65,300 to reflect a fall of 1.4% in the retail price index (RPI) from September 2008 to September 2009. The compensation caps are linked to the RPI.

Read more: http://www.out-law.com/page-10612

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Happy New Year

Wishing you a very happy and prosperous New Year

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