In-house Legal Bulletin - February 2018

Taxation of Termination Payments

A number of changes to the tax treatment of payments made on the termination of employment will come into effect from 6 April 2018.

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Best or reasonable endeavours: Uncertainty in drafting

In commercial contracts it is common to come across clauses which require a party to use "best endeavours", "reasonable endeavours" or "all reasonable endeavours". It is not always clear what the difference between these interchangeable terms are, and even with a substantial body of case law dealing with these clauses there remains a certain level of uncertainty around interpreting them. This note sets out the factors that should be considered when drafting or reviewing such clauses.

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Indemnity costs may be awarded for unreasonable conduct, even if such conduct occurs frequently

The case of Whaleys (Bradford) Ltd v Bennett and Cubitt [2017] EWCA Civ 2143 recently considered the test to be applied for granting an order for costs to be assessed on an indemnity basis.

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