Risks of Exporting Goods

Below are a number of factors which may result in your exportation business being put at risk.

• Poor understanding of foreign markets. When exporting goods often a difference in business culture, language and even that country’s legal system can all potentially pose a risk

• Exporting to a country which has trade barriers in place can cause obvious problems

• Dealing with a country which has specific restrictions or limitations on the products your company are exporting

• Difficulty in enforcing your rights when copyright of your brand or trademark has been breached

• Selling your goods in foreign currency

• The customer’s credit worthiness and possible costs of legal action required to recover monies owed

• Lengthy delivery times and long gaps between delivery and payment

• If the country you intend to export goods to has a weak economy or is politically unstable

• Knowing when to declare the income made on products purchased from you to Intrastat

Minimising Risks

A vital key to minimising the risks of exporting is to ‘do your homework’. Thoroughly research the country or countries you intend to export your products to. Find out about their economy, is it weak and unstable or strong and solid?

Find out how their legal system operates to ensure you won’t be breaching any regulations by exporting specific products. Read profiles on the country and, in particular, the region you will be exporting to.

Register with the UK Trade and Investment website to access overseas sector reports. It’s also a good idea to find out whether any agreements are in place with these countries to help reduce the risks when exporting.

Ideally, to get to know the country firsthand it makes good business sense to pay a visit.

Securing good partners is also imperative and it pays to find a reliable distributor or agent with both sound local knowledge and good knowledge of the country in general.

Minimising Financial Risks

• Never agree to an export deal before ensuring you have enough working capital. You will need to have a clear picture of any possible impact the prospective deal may have on your cash flow before entering into an agreement

• Always ensure you are up to date on the current exchange rate when trading in foreign currency otherwise you may find that if a foreign currency falls you will receive a lot less than expected

• Make sure you opt for some type of insurance cover to safeguard against any losses or damage to goods which may occur. The UK’s official export credit agency, UK Export Finance, offer a range of services to suit the export business whether dealing in capital, semi-capital or non-capital goods including:

1. Insuring UK export companies against non-payment of a contract by the buyer
2. Guaranteeing the securement of bank loans to enable overseas buyers to purchase goods from UK export companies
3. The sharing of credit risks with banks to enable export companies to raise contract bonds and tender, to assess the working capital of pre shipment and post shipment and the securement of confirmation of letters of credit
4. Providing UK investors investing in overseas markets with insurance cover to protect against political risks

Agreements

There are currently 90 agreements in place between the UK and other countries which offer protection to investors and help minimise the exposure of export companies to risks of both a legal and financial nature.

The main aspects of these agreements include:

• Provisions for the non-discriminatory and equal treatment of all investors and investments

• Compensation for seized property

• The transfer of capital and returns

• Providing access to independent dispute settlements

Arab spring

Last year’s events in Tunisia, Syria, Egypt and Libya highlighted the importance of the right to protest in the countries’ pursuit of democracy. In the UK we seem to contrast these situations with the right to peaceful demonstrations in this country such as the teachers’ strike.

Limitations

2012 is an important year for the UK and London in particular; it is the year of the Olympics and the Queen’s Diamond Jubilee. An influx of tourists is expected and increased amount of public events presents an opportunity to make a stand by protesting against issues close to one’s heart in front of millions of spectators. It seems to be a good time to raise a debate as to the limitations of the right to protest. Some restraints were introduced by the Labour government by introducing ‘stop and search’ powers in zones designated by the police to prevent terrorism. Groups willing to protest must also provide information as to the location or route of the protest and expected numbers of participants (although the numbers went beyond expectations during the students’ protest in 2010). These measures may seem reasonable when a situation gets out of control however they have the potential of affecting the ‘real’ peaceful protesters and innocent bystanders. All that is required to arrest someone is presence at the scene of a protest that gets out of hand.

Kettling

Kettling is a relatively new tactic used by the police to control crowds during demonstrations. It involves the police forming a cordon, which moves to keep the crowd in a designated area, and forcing it to leave the area of protest or prevent it from moving. The debate and controversy that it causes evolves around the fact that innocent bystanders might get caught in the process. Controversial as it is, the tactic has been approved as lawful by a ruling of the European Court of Human Rights in March 2012 after being challenged on several occasions. The reason the issue was even brought to the European court was the case of Austin from 2001. Austin, as well as 3 other applicants, was part of the May Day demonstration. She was there as a protester, the other 3 just happened to work or shop in the area and spend their lunch break there. All of them were arrested and detained for about 7 hours without access to water, food or a toilet. The ruling was that there was no unjustified deprivation of liberty.

The future

The ECHR’s judgment demonstrates that in a modern society individuals may have to suffer injustice for the greater good of protecting the public as a whole. The question is where do the boundaries lie? How much injustice is too much and how do we balance the human rights of the individual against the human rights of the public? The UK courts have got an important task at hand as the case of Austin is not the first and not the last one to go through the court system of England and Wales. With the big events of 2012 approaching one can only hope that justice, whatever that might mean, will be done.

http://www.guardian.co.uk/commentisfree/2012/may/01/right-to-protest-under-attack

http://www.bbc.co.uk/news/uk-17378700

Up to date there have been lots of cases concerning agents who executed a contract on behalf of their company against the company’s interest or will. In such case there are a number of important questions to answer including:

• Is the contract valid?
• What can the company do about fraudulent agents?
• How to protect the company against improper use of authority to deal on behalf of the company?

To understand better the above questions and fully answer them we need to turn to the legal concepts of agency including the actual and apparent (also known as ostensible) authority.

What is meant by agency?

In company law terms, agency describes the relationship between a company and its agent. An agent is a person or company authorised to act on behalf of its principal (the company). This usually includes power to deal with the company’s contacts and most importantly authority to execute contracts and enter into transactions. Like a simple contract, agency can arise through a written agreement or even verbal statement appointing a person to be an agent. Agent’s authority can also be implied from conduct of the parties.

Types of agents

There are different types of agents and it would be beyond the scope of this article to name all of them.  Here are however a few examples:

• General and special agents are one of the most common types of agents. They represent the company in its day to day business dealings. A good example of general agent would be a person appointed to execute contracts on behalf of the principal. If the trades were specific the agent would be called a special agent (i.e. a solicitor authorised to sell company’s property would be a special agent).
• Mercantile agents are usually provided with authority to buy and sell goods on behalf of their principal.
• Brokers acting for their clients are also in effect agents.

What is an actual authority?

Actual authority is a type of an authority granted to an agent by its principal.  Actual authority can be either expressed or implied. In both cases, the most important is the scope of the authority. So long as the agent acts within the scope of its authority they will be protected and able to claim an indemnity. Expressed authority is quite obvious and normally means that the agent has been instructed to act under a letter of appointment or verbally (might be difficult to prove).

Implied authority may arise in a number of ways.  Normally, implied authority arises in relation to matters that have not been expressly stipulated but are necessary to be done in order to fulfil the expressed authority. The most important point to note is that that implied authority can never override express authority and contradict it. Some agents who are members of professional bodies will also be subject to regulations. Such regulations cannot be overridden by any type of authority. Therefore, if a solicitor breaches the professional regulations under expressed authority this will not diminish his responsibility as professional code overrides any authority. when an agent is placed in a particular position by the principal.

A good real life example would be a general manager of a company. Such person has an implied authority to make all relevant decisions on behalf of the company such as execute contracts. If this topic particularly interest you, you may want to read the judgment in Hely Hutchinson v Brayhead Ltd (1968) 1 QB 549 which concerned similar circumstances as those described.

Apparent authority

Apparent authority exist to suit commercial realities of conducting modern business. Lord Diplock famously pointed out that in the case of Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2QB 480 ‘in ordinary business dealings the contractor at the time of entering into the contract can in the nature of things hardly ever rely on the actual authority of the agent’. The reason behind this is that it is impossible very often to thoroughly study agent’s authority under his contract with the principal. Therefore, when entering into a contract third-party companies need to assume good faith on the part of the agent.

To protect third parties against principals denying the agreement on the basis of agent’s lack of authority the law has developed the doctrine of estoppel. So long as the principal represents to the third party company that the agent is authorised to enter into a contract and the third party company enters into a contract through the agent based upon the representation that the agent has authority, the third party company will be protected and the principal will not be able to deny the agency.

This is a very simple explanation of this complex doctrine and should you wish to further explore this area you may want to refer to further sources. A good article to have a look at can be found here.

It’s a little known fact but did you know that you may actually be able to make a claim for compensation from your credit lender when you have purchased goods, either on your credit card or via a loan, which were faulty or damaged?

Most people think that compensation would need to be sought directly from the trader who sold them the faulty goods in the first place and yes, under most circumstances, this would be true but there are a couple of instances in which a consumer may be able to claim compensation for faulty goods from their credit card or loan company.

Read on to find out how……..

Equal Liability

Equal liability means the consumer could make a claim against the credit lender or against both the credit lender and the trader responsible for selling the faulty goods without having to make a claim against the trader in the first instance.

A consumer has a right to make a claim against the credit card or loan company when the goods purchased cost more than £100 but less than the value of £30,000.

The equal liability claim can be made against:

• The credit card company who issued the credit card used to purchase the goods

• Any other credit lender or loan company which the trader has arranged to provide the credit for the purchase of the goods. An individual cannot make a claim against a loan or credit company they themselves have chosen and taken out a loan with to pay for the goods

• An individual will also be unable to make a claim if the goods were purchased on a conditional sale or hire purchase basis

Putting in an Equal Liability Claim for Goods costing over £30,000

New legislation states that, as from 1^st February 2011, if an individual purchases faulty goods which total more than £30,000 they may now be able to put in an equal liability claim, although the faulty goods will need to have been purchased on or after this date.

The rules are slightly different when making a claim for goods costing the consumer over £30,000 than they are for goods which cost less than £30,000 and the credit lender can only be approached by the consumer when:

• The consumer has approached the trader responsible for supplying the faulty goods but they have refused to pay compensation

• The consumer has been unable to track down or get a response from the trader

• The trader is no longer in business

The claimant’s case will also need to fit the following criteria:

• That the credit the individual acquired was used to pay for something specific such as a newly fitted kitchen, a new bathroom or a vehicle and the reason for the loan must be stated on the loan

• That the credit acquired was less than £60,260.00

• That the goods purchased were not done so using the individual’s credit card

• That another form of compensation or replacement for the faulty goods hasn’t already been made by the trader and accepted by the claimant

• That the loan was not acquired for business purposes

• That the loan acquired was not a conditional sale or hire purchase agreement

• That the credit was put in place by the trader responsible for selling the faulty goods and not by the claimant
  

Chargeback

On occasions where an individual may not be entitled to make an equal liability claim they may be able to claim a chargeback to their account.

Chargeback schemes are run by banks and debit card companies and are usually approached by individuals who have purchased faulty goods using their debit card however individuals who have purchased faulty goods using a credit card can also claim chargeback so long as the purchase cost no more than £100.00.

If you think you have a claim then you will need to contact your bank or debit card company who will be able to give you further advice on claiming a chargeback depending on your circumstances.

An individual may be able to request a chargeback if the goods they have ordered either turn up damaged or faulty or if the goods don’t arrive at all.

First steps

Before you set up a business you need to decide some preliminary matters:

• What is the purpose of the business,

• What are its main activities (trading, consultancy, services etc.) and

• What is its size (small, medium, family etc.)

You need to devise a plan and set strategic long-term goals in order to decide where you want the business to be in the next weeks, months and years. There are certain factors independent from the business, which will influence it, such as the state of the economy, environmental factors and global financial markets. The analysis which you will conduct before you start setting up your business will have to take those independent factors into account.

Legal form of the business

A business needs to have a legal personality. Depending on the outcome of your strategic planning and market analysis for the type of business you are thinking of starting you can choose from the following options for the form of your business:

• Sole trader

• Partnership

• Limited Partnership (LP)

• Limited Liability Partnership (LLP)

• Company

Sole Trader

Sole trader is the simplest of business forms. As the name suggest as a sole trader you form a business yourself and do not require other people to run it. You are self-employed and do not form a separate legal entity, which saves you the trouble of paying fees and registration charges. The disadvantage of being a sole trader is that you are individually responsible for any debts and liabilities your business makes and you have to make all of the strategic decisions yourself. Examples of sole traders include small barbershops or hairdressers and beauticians who run their own affairs.

Partnership

Partnerships are relatively easy to establish, they are owned by two or more people (or companies) who share the responsibility for running the business. A partnership does not have a separate legal personality; it is dependent on the partners. Partners will draw up a deed of partnership to establish it and write down the terms of the agreement. There is no limited liability in a partnership: each partner is equally responsible for the debts of the business, which could be risky depending on their financial situation. Creating a partnership does not cost anything and no formalities are required, which is why some companies start as a partnership. Examples of partnerships are lawyers, accountants or surveyors.

Limited Partnership (LP)

This form of business is very similar to partnership (not a separate legal entity) but with some modifications. In an LP some partners have got a limited liability for the debts of the business. An LP requires at least two partners: at least one general partner (whose liability is unlimited) and at least one limited partner (up to the amount of their contribution). The general partner is the one who manages the business. As the limited partner does not perform any day-to-day management functions an LP is often used when one person is an investor protected from liabilities (the limited partner) and the other works as the business manager (the general partner).

An LP must be registered at Companies House using the LP5 form by providing its name, general nature of the business, principal address, names of the partners and the sum contributed to the business by each limited partner. The business’ name must include ‘LP’ or ‘Limited Partnership’. Once the LP has been formed and registered, the Registrar will produce a certificate as evidence of the LP’s existence. The LPs register is available for public inspection.

Limited Liability Partnership (LLP)

An LLP is treated as a separate legal entity, which means it has got a legal personality independent of its members, it is liable for its own debts and has got the power to sign the contracts (through its partners on behalf of the LLP). Consequently, members of an LLP have got a limited liability. Two or more people (or companies) can set up an LLP with a view of making profit (charities or non-profit organisations rarely set up LLPs). To register, members of an LLP must fill out the LL IN01 Form and send it to Companies House with a relevant fee. The form includes information such as the name of the business, its registered office address and which members are its designated members (at least two members who need to appoint an auditor, sign the accounts on behalf of the LLP etc.) Once the LLP is registered the Registrar of Companies will issue a certificate of incorporation to confirm that all of the legal requirements are complied with.

Company

A company is an entity independent from its owners (shareholders), directors and creditors. The concept of company’s limited liability means that it the shareholder’s responsibility for the company’s debts is limited to the amount they have invested in the company but the creditors can exercise their rights in full against the company. A company must be registered at Companies House and file annual accounts. There needs to be a company constitution in place consisting of Articles of Association which are the basis for the agreement between the company and its members (shareholders) and between the members themselves. Setting up a company is the most complicated of the above-mentioned forms of business and it is a good idea to seek legal advice to ensure filing of the right documents and following the proper procedure.

You may have noticed that there have been a growing number of cases where comments made on social networking sites, such as Twitter, have landed people into serious trouble. According to lawyers, there are a number of pieces of legislation which can be used to prosecute someone who has made inappropriate comments online and we examine some of this legislation here.

The latest case is that of Liam Stacey, who drunkenly sent a series of abusive tweets following Premier League and Bolton Wanderer’s footballer Fabrice Muamba’s cardiac arrest. Stacey was subsequently charged under the Crime and Disorder Act 1998 for making racially aggravated comments and has been sentenced to 56 days in jail.

In March, a student admitted sending former footballer turned pundit Stan Collymore, racially motivated tweets. He was charged with sending grossly offensive messages under the Communications Act 2003 and was given a two year community order. In February, another football fan was handed a four month suspended sentence under the Malicious Communications Act 2003 for racial comments aimed at Newcastle United fans.

 These cases are not limited to celebrities or racially motivated attacks; they are much wider in scope. The riots last August in England saw at least two people jailed for posts on social networking sites encouraging rioting, even though their actions led to no trouble. They were prosecuted under the Serious Crime Act 2007. There is also the case of Paul Chambers from Doncaster who sent a tweet about blowing up Robin Hood Airport when he found out that the airport had been closed. He was convicted and fined for sending menacing messages under the Communications Act 2003.

Returning to the celebrity arena, social media has also played an interesting role with regards to the viability of injunctions. Strictly speaking a number of people were guilty of contempt of court by revealing Ryan Gigg’s identity following a High Court injunction, but these people were not prosecuted on the basis that there really was not much that could be done due to the number of people in breach. In March there was also a Twitter libel case, with cricketer Chris Cairns awarded damages after suing the former chairman of the IPL over allegations he was match fixing. The danger here is that comments posted online are akin to being “published” and therefore users must be careful before they make any accusations.

Social media cases are unusual in that it is the suspects themselves who provide enough evidence to be prosecuted. These people post messages online without thinking who might be reading them or the consequences of their actions. One proposed solution is for social networking site to take responsibility for advising people as to what can and what cannot be said on social media sites, including what could lead to a criminal offence.

A will is a legal document distributing the assets after the testator’s (person who makes the will) death. By making a will you can decide what happens to your possessions after your death, who will benefit from them and how they should be distributed. There is no legal obligation to make a will but if a person dies without one, their assets will be distributed according to the intestacy rules in an order established by the law and dependent on their personal circumstances.

Making a will

It is possible for the testator to write the will themselves however it is advisable to consult a solicitor as there are some formalities and legal requirements which a will needs to fullfil (see below) in order to be valid. The will should clearly describe the assets or property and the intended beneficiaries (people who will receive them).

Why should you make a will?

• If you are an unmarried couple and want to provide for you partner after your death
• If you want the distribution of your assets after your death to be your personal decision and provide for your family or friends
• If you are divorced and want to provide for your former spouse
• If you want to ensure that you do not pay more Inheritance Tax than necessary

Validity

For a will to be valid the testator must fulfill certain requirements. These are as follows:

• The testator must have the capacity to make a will: he or she must be 18 or over (unless they he or she has privileged status) and be of sound mind (medical evidence should be provided in some circumstances), memory and understanding. They have to be able to understand what the nature and purpose of the will is and what is the extent of their assets.

• Have the intention to make a will:her or she must have a specific intention to make this specific will; and

• Comply with the legal requirements:the formalities are listed below
  

Formalities

These are the formalities required by the statute and must be complied with in order for the will to be valid.

• The will must be in writing and signed by the testator or (in case of the testator not being able to sign it him or herself) someone else in the testator’s presence and by his or her direction

• The testator must intend that his signature is to give the effect to the will

• The will is signed in the presence of minimum two witnesses (the maximum number is not specified) present at the same time

• Each witness must sign the will

• The will should be dated although it is not invalid if there is no date

Proceedings after making a will

• The will should be kept up to date, it is advisable to review your will every five years as well as after changes in circumstances: getting married, divorced, having a child, deaths in the family etc.

• Every change to a will needs to be formally made by a legal document called codicil

• The will and all related paperwork should be kept in a safe place and the will’s executors (person or people nominated by the testator to ‘execute’ or carry out the directions of the will) should be informed of the will’s whereabouts

Executing a will

A proper execution is one of the legal requirements for the will to be valid. It is preferable that the will is executed in the solicitor’s office where he or she can ensure the compliance with the law.

Major changes and annulment of a will

Changes to the will can be made during the lifetime of the testator. These are usually made by a codicil amending and referring to the will. If there are any major changes in circumstances the testator should simply make a new will.

Methods of annulment (revocation) of a will:

1. Marriage: the testator’s marriage or civil partnership automatically revokes any wills made before it unless they were made with this marriage in mind  (the will specifically refers to it).

2. Destruction: any way of destroying the will (tearing it, burning, cutting into pieces etc.) will annul the will as long as that is the intention of the testator.

3. Making a new will or codicil:the new will should expressly state that it revokes any earlier wills.

What is a Trust?

A trust is in essence where the legal owners of an asset are separated from those who are the ultimate owners of the assets, the beneficiaries. The legal owners holds the assets on trust for the beneficiaries. Trusts are set up for many reasons, often tax, as the division between legal and beneficial ownership can be very significant. Other reasons can include retain of control of assets to ensure beneficiaries only receive income or distribution of capital is delayed over a period of years and possibly even decades.

A trust doesn’t necessarily just include cash; some trusts are set up to manage stocks, bonds and even property.

What is a Trustee?

A trustee can be an organisation or individuals who manage the assets for beneficiaries. The trustee takes full control over the assets within the trust and will be expected to manage those assets in the best interests of the beneficiary/beneficiaries.

What are the Duties of a Trustee?

• When a trustee is appointed to manage the assets within a trust he must always do so with the settlor’s or beneficiary’s best interests at heart. This is known as a fiduciary duty.

• Any investment decisions the trustee makes regarding the trust should be of benefit to the settlor or beneficiary.
  

• A trustee should not take gambles with the assets such as making high risk investments and should take on the mindset that ‘slow and steady wins the race’.
  

• If the trust is an Express Trust then the trustee will be expected to adhere to the specific instructions surrounding that trust when managing its assets.
  

• If the trust is a Discretionary Trust then the trustee will have more freedom in making decisions beneficial to that trust and can use their discretion when managing the assets and making investments.
  

• A trustee must ensure that there are no conflicting interests between the duties they have as a trustee and other duties they are responsible for.
  

• If the trust also includes property then, in most cases, the trustee would be responsible for the care and upkeep of those properties and may be expected to collect any payments due if the properties are rented out.
  

• Unless otherwise stated within the trust agreement, a trustee will also have the authority to mortgage, rent out or sell property within the trust if it is in the best interests of the settlor or beneficiaries.
  

• A trustee is responsible for producing regular progress reports or up dates for the settlor or beneficiaries regarding the trust and, if the trust is a Discretionary Trust, the trustee will also be responsible for keeping the settlor or beneficiaries updated on any investment activities undertaken.
  

• After accepting trusteeship a trustee cannot give up their responsibilities unless an approved successor is willing to take their place.
  

• A trustee cannot use the assets within the trust for their own financial gain.
  

• Although a trustee will not benefit from the trust itself usually provisions are made by the settlor to ensure that the trustee is compensated for their services.

Liability of trustees

A trustee cannot be held responsible for any investment losses the trust experiences provided the trustee carried out those investments whilst acting in the best interests of the settlor or beneficiaries.

However, if a trustee makes a rash investment decision which results in a loss which is greater than the value of the assets within the trust then the trustee will be financially responsible for the remainder.

Where a professional trustee is appointed such as a solicitor or accountant, the standard required will be higher and one advantage of appointing a professional is that he or she or they will almost certainly be required to carry appropriate levels of professional indemnity insurance.

If a settlor or beneficiary has concerns regarding the intentions of the trustee then the trustee can be removed from their place of trust via a court order.

What is divorce?

Divorce is the official recognition of the end of a marriage. It is non-fault based  but in some cases there will need to at least be a witness statement which claims fault if the parties or one of them can’t satisy some of the facts relating to time spent apart (see below).

Grounds for divorce

You must have been married for at least one year to get a divorce and the marriage must have broken down ‘irretrievably’. There are five facts, one of which needs to be proven to obtain a divorce in the UK. These are:

1.    Adultery – Where one of the spouses has committed adultery and the other one finds it intolerable to live with him or her.

2.    Unreasonable behaviour – Behaviour of a spouse, which makes it intolerable to live together. Unreasonable behaviour is the most common basis of getting divorce and   can include a broad range of acts such as infidelity, violence and even devoting too much time to one’s career.

3.    Desertion - Where one of the spouses leaves (deserts) the other one against their will for a continuous period of at least two years.

4.    Two years‘ separation plus consent - Where a couple has been living apart for a continuous period of at least two years and both spouses agree to a divorce. It is possible to be separated even when living under the same roof, if the spouses live separate lives.

5.    Five years‘ separation means living apart for a continuous period of five years and no consent is required.

Divorce proceedings

• Filing a petition with a court

The proceedings are started when one of the spouses files a petition with the court. If both parties agree to a divorce the proceedings are usually quite straightforward and last about six months, based on a 2 stage process, decree nisi and then decree absolute. Where children are involved or finances, this can sometimes hold up the divorce although the divorce itself may go through, subject to these issues being resolved thereafter.

• No need to attend court in person

The parties do not need to attend court in person as every stage of the divorce takes place on paper (as long as both parties agree the details between themselves).

• The arrangements regarding children

If the parties have children they need to send a statement of arrangements for children, form explaining the living arrangements for the children after divorce and an explanation of who will look after them and on what basis. This will need to be accepted by the court – even if all matters are agreed by consent regarding custody and finance, where children are involved, the court must sanction the agreement and there can be no final order made. In other words, either party can reapply to the court to vary the orders made in the future.

Legal costs

It is advisable that the parties agree or negotiate the responsibility for the legal costs between themselves.

Defences

There is a defence available where one party alleges five years’ separation and the fact of adultery or unreasonable behaviour can in theory be defended although because divorce is non-fault based in essence, it is unlikely that a divorce will not ultimately go ahead.An exceptional hardship defence can be used where the spouse receiving the divorce petition (the Respondent) can show that he or she will suffer a significant loss of income if the divorce is granted but again, this is rarely a viable option for more than stalling the inevitable.

Ancillary orders

 If the spouses cannot agree on how to divide their financial assets they can make an application for an ancillary relief order: either financial provision orders for periodical or lump sum payment or property adjustment order for transfer of property or its settlement.

What is the Party Wall Act?

Brought into force in 1997 the Party Wall Act 1996 applies to particular building or structural work which will take place either on or close to a boundary shared by neighbours.

As well as covering the owner’s rights the Party Wall Act also provides the adjoining owners with a certain degree of protection should they experience damage to their property in the process.

What does the Party Wall Act Cover?

The term ‘Party Wall’ can be quite confusing and misleading and many think it refers to just the shared wall that separates two adjoining properties as in semi-detached properties, however, this is not the case.

Below are all the aspects that the Party Wall Act covers:

• A garden wall which is not part of a building but sits on or against the boundary line and separates the properties
• A wall which is part of just one property but sits on the boundary line between two or more properties
• A wall common to at least two properties which is used by both property owners, even if the wall is owned by only one property owner.
• Ceilings and floors of flats where one owner’s ceiling is another owner’s floor and vice versa
• Excavation work near a neighbouring property

Work which will Require a Party Wall Notice

Any work which may affect the neighbouring properties or the support and structure of the party wall will require a party wall notice and permission from all neighbours involved.

Work which will require a Party Wall Notice to be served includes:

•  Increasing the thickness of a Party Wall
•  Increasing the height of a Party Wall
•  Demolishing a Party Wall
•  Rebuilding a Party Wall
•  Inserting any type of damp proof coarse into a Party Wall
•  Inserting load bearing beams into a Party Wall
•  Underpinning a Party Wall
•  Excavating within 3 or 6 metres of a neighbouring property to depths which go below the foundations of that neighbouring property, depending on the size of the hole excavated

What does a Party Wall Notice Need to Contain?

•  A Party Wall Notice will need to include the address of the property where the work is intended to take place
• The names of the property owners who will be undertaking the work
• The details of all the affected owners of neighbouring or adjoining properties
• A brief outline of the work intended to take place
• The intended start date
• A statement informing all parties involved that the notice is being served under the Party Wall act and the date that the Party Wall Notice will be served
• Drawings will also need to be included if the Party Wall notice being served is for excavation

If no Party Wall Notice has been served and a person commences the work without consent then the affected parties are well within their rights to seek legal advice and even apply for an injunction to prevent further work taking place.

Serving a Party Wall Notice

 When the work planned falls under the Party Wall Act the owner intending to carry out the work will be required to send out a Party Wall Notice to all the neighbours who will be affected by the work.

•  The notice will need to be served on the affected neighbours at least two months before the work is due to commence.
•  The Party Wall Notice will inform all affected neighbours of the work intended to which the neighbours will need to respond.
• The neighbours will need to give a written response either consenting to the work or dissenting to the work within 14 days of receiving the notice.
• If no response is received from a neighbour after 14 days then the party wall notice is put into a dispute.
•  If the notice is put into a dispute then it may be possible to have a revised notice drawn up.
• The owner will not be able to start any work until all neighbours involved have consented to the intended work in writing.