All posts by hslegaldev

Contractual Obligation

A contract is an agreement giving rise to obligations which are enforced or recognised by law. When contracting parties’ sign such an agreement they mutually agree to perform their part of the obligations stipulated in the agreement.

Contract law governs the relationship, content and validity of such an agreement and covers a wide range of agreements, from the sale of goods/provision of services to exchanges of interests or ownership.

What Are Contract Obligations?

Contract obligations are those duties that each party is legally responsible for in a contract agreement. In a contract, each party exchanges something of value, whether it is a product, services, money, etc. On both sides of the agreement, each party has various obligations in connection with this exchange.

If either party fails to perform their contractual obligations according to the contract terms, it will usually result in a breach of contract. This may result in a damages award to reimburse the non-breaching party for their economic losses.

How we can help with contract obligations case?

Contract law essentially comes into play when the agreement terms are breached or about to be breached and the aggrieved party needs to enforce the terms of the agreement. Our commercial and litigation teams combine to assist and advise you throughout the contractual process, from drafting the contract to your specific requirements, to advising and representing you if there has been a breach of contract.

Examples of Contract Obligations

Contract obligations generally depend on the specific subject matter of the contract. Contract obligations for a sales contract may be much different than other types of contracts, such as a rental agreement contract. However, most legal agreements contain some of the same types of contract obligations, such as:

  • Payment:  One party is usually legally bound to provide payment for the sale of goods or services. The contract terms may state obligations regarding payment amounts and the deadline for payment.
  • Quality of Goods:  The seller may also be bound to provide goods of a certain quality. This may be specifically described in the contract

These types of obligations can vary according to the individual details of the contract. In addition to these specific obligations, each party in a contract is also bound by certain general principles and obligations when forming the contract.

For instance, each party is obligated to deal fairly and truthfully with the other party, and each party is also obligated to refrain from using force or oppression in obtaining the agreement.

Can Contract Obligations Be Transferred to Another Party?

In some cases, contract obligations can be transferred to a third party. For instance, if one party is obligated to paint the other party’s house, they can sometimes hire an outside party to do the painting for them. This is known as “contract delegation”.  Contract delegation may or may not be allowed for all obligations; the ability to delegate a contract duty may depend on the type of obligation as well as state contract laws.

For instance, a contract obligation usually can’t be delegated if it involves unique craftsmanship or artistic ability that can only be performed by the specific party to the agreement.

Do I Need a Lawyer?

Contract obligations will be different in each individual claim. You may need to contact an experienced contracts attorney if you have any disputes or legal questions about a contract obligation. Your lawyer can provide you with legal research and guidance to address your inquiries about contract obligations. In addition, if you need to file a lawsuit for a violation of contract obligations, your attorney can provide you with assistance and representation in court.

Commercial Dispute Resolution And Litigation

At some point in business, it is inevitable a problem or dispute will arise with a supplier, customer, or other third parties.

Whatever the situation we have the expertise to assist you in resolving the dispute. With extensive experience in dispute resolution and both High Court and County Court litigation, we will be able to guide you through the process of achieving a solution which is both effective and practical for your business.

Some of the areas in which we can assist are:

  • Contract disputes
  • Debt Collection
  • Corporate and Shareholder Disputes
  • Property and Landlord and Tenant Disputes
  • Partnership Disputes
  • Insolvency and Recovery
  • Enforcement of Judgments

Shareholders agreements

The structure for running a Limited company is set out in its Memorandum and Articles of Association as registered at Companies House. However, in a small privately owned company, this does not give the owner the necessary protection and appropriately document the relationship between shareholders.

What are shareholders agreements?

Shareholders agreements are, as you might expect, an agreement between the shareholders of a company. It can be between all or, in some cases, only some of them. Its purpose is to protect the shareholders’ investment in the company, to establish a fair relationship between the shareholders and govern how the company is run.

Why shareholders agreements are important?

It is vital that the shareholders in a business prepare Shareholders Agreements which document what happens if:

  • A shareholder wants to leave, how the relationship is terminated, how the assets are valued and whether the shares remain with the shareholder or whether they are required to return to the company
  • Similarly, if a shareholder dies what happens to his shares, how they are valued and whether they are passed to his beneficiaries or whether they are required to come back into the company
  • What happens if there is an arm’s length transfer of shares or an offer for the company
  • On a day to day basis, how the business is run and what decisions need to be unanimous and what can be left to individual shareholders

How can we help with shareholders agreements?

Our business services team have prepared Shareholders Agreements for all sizes of companies and we understand that all companies are not the same.

We offer you a free initial meeting to discuss the areas of importance for your company and supply you with a checklist identifying those topics which shareholders should discuss and agree on at the time of forming a business.

In many circumstances, we can offer you a fixed fee for drafting a Shareholder’s Agreement and putting in place protections you need. For assistance Contact us on 01206500181.

 

Partnership agreements

Whilst there is no legal obligation requiring a business partnership to put in place  Partnership Agreements it is very important to do so in order to regulate the business relationship because the law does not adequately provide for many issues which can arise in the modern world.

What should be added to partnership agreements?

It is vital that Partners in a business address and document what happens:

  • To the profits and losses of the business, how they are divided
  • If a Partner wants to leave, how the relationship is terminated and how the assets and the profits of the business are divided
  • If a Partner dies, what happens to the assets and the profits of the business
  • On a day to day basis, how the Partnership is run, what decisions need to be unanimous and what can be left to individual Partners

How we can help with partnership agreements?

Our business services team has prepared Partnership Agreements for all types and sizes of business. We understand that businesses are not the same.

We offer you a free initial meeting to discuss the areas that are important for your business and supply you with a checklist identifying those topics which prospective Partners should discuss and agree on at the time of forming the business.

In many circumstances, we can offer you a fixed fee for drafting a Partnership Agreement and putting in place the protections you need. For assistance Contact us on 01206500181.

 

Buying and selling companies and businesses

We have had years of experience in both buying and selling all types and sizes of companies and businesses. We have experienced team at guiding when it comes to selling a business or company or buying a business.

How we can help with selling a business or buying a business?

If you are selling a business or a company or considering buying a business or a company then taking advantage of our initial free interview to prepare you for that process and outline the type of documentation and process you will need to follow would very much be of benefit to you.

We understand that if you are buying or selling that there is a need to move as quickly as you require without compromising the protections you need.

Things to consider when buying a business or selling a business

The process of buying a business or  selling a business centres around:

  • The need for Non-disclosure and Confidentiality Agreements at the beginning or prior to negotiations
  • All aspects of Due Diligence
  • Preparing Heads of Terms
  • Preparing, negotiating and concluding the sales/purchase agreements for the business, and the warranties and disclosure letters which underpin the transaction.

We are experienced at guiding businesses and their management team from the early stages of negotiation all the way through to completion. For assistance Contact us on 01206500181.

 

Sole Representative Visa

Whereas employees coming to the UK for up to 6 months may be able to rely on a business visitor visa, if the assignment is long-term and involves expansion into the UK market, the Sole Representative Visa could be better suited to your needs.

What is a Sole Representative Visa?

For overseas businesses looking to send employees to the UK, there are many visa options to consider. Your choice will be determined by a number of factors, including the role of the employee, the nature of the activity, the time they plan to spend in the UK and the status of the company’s operations in the UK.

The Sole Representative Visa permits companies to send a single employee to the UK to set up a branch or subsidiary.

There are many advantages to the Sole Representative Visa making it a desirable entry route, but the eligibility requirements are strict, and place heavy restrictions on the nominated individual and type of activity that can be carried out when in the UK.

Can a sole representative visa holder bring family members to the UK?

It is possible to bring dependents, such as a spouse and/or children under the age of 18, with you to the UK. However, you will need to show that you have enough money to maintain and accommodate yourselves in the UK without recourse to public funds.

Are there any additional requirements for a sole representative visa?

You will also need to show that you have met an English language requirement. If you are a national of a majority English speaking country or already hold a qualifying degree, you will, subject to providing the necessary evidence, fulfil this requirement. If this is not the case, you will need to pass an approved English language test prior to applying for a sole representative visa.

Contact our Sole Representative Visa Advice Lawyers

For advice and assistance with an application for entry clearance, an extension of stay or settlement as the sole representative of an overseas business, contact our immigration barristers on 01206500181 or complete our online Enquiry form and we will get in touch.

Civil Penalty under Immigration Act

If your business has received a Civil Penalty under the Immigration Act, it is important to seek legal advice early on the appeal options open to you, to avoid delays and improve your chances of making a successful challenge.

What is a Civil Penalty under the Immigration Act?

All UK employers must by law – under Section 15 of the Immigration, Asylum and Nationality Act 2006 – ensure all employees have relevant permissions to work lawfully in the UK by conducting effective Right to Work checks. Through the civil penalty regime, UKVI ensures employers are compliant with the immigration rules.

Where businesses are found to be in breach of their immigration duties, a civil penalty for illegal employment may be served – up to £20,000 per breach.

The Impact of a Civil Penalty Notice can be far-reaching 

As well as the obligation to pay a hefty fine, a civil penalty for illegal employment may result in:

  • Criminal prosecution
  • Enforced debt action
  • County Court judgment
  • Tier 2 Sponsor Licence revocation
  • Adverse impact on the ability to obtain future credit
  • Disqualification of company directors
  • Inclusion on the Home Office’s civil penalty offender list
  • Bad press, reputational harm and a resulting hit on profits
  • Business forced to cease trading

Objecting to a Civil Penalty for Illegal Employment 

If your business has been served a civil penalty under the Immigration Act, you may wish to consider your options to challenge the fine, to limit the financial, operational and reputational impact.

The appeals process is, however, complex, and you have a limited amount of time to weigh up the pros and cons and make a decision based on the options open to you.

The Home Office has the power to increase the level of the original penalty at the appeal stage – so it is important to proceed with an objection only where you are confident in the merit of your challenge following professional advice.

To contact one of our Immigration Solicitors or Immigration Barristers please complete our online Enquiry form and we will get in touch or call us now on 01206500181.

Sponsor Licence Revocation

As a sponsor licence holder, you are required by law to meet a number of duties in relation to the management of your sponsor licence. The Home Office is taking an increasingly vigilant approach to immigration enforcement. Failure to comply or to engage actively with the Home Office can result in Tier 2 sponsor licence revocation.

Challenging a suspected breach of immigration duties

If you have received formal notification from UKVI that your company’s Tier 2 sponsorship licence is at risk of revocation, your next steps will be crucial in determining the resulting impact on your business.

You will be required to respond to the notification within the given timeframe taking into account:

  • The grounds for revocation: Is the Home Office justified in taking the most severe of enforcement measures against your business?
  • Challenging factual error: If the revocation is as a result of a factual error, how will you evidence this?
  • Addressing the breach: If the revocation is as a result of non-compliance, how will you rectify the breach?
  • Impact on business: If your sponsor licence is revoked, what will be the full impact on your business and the wider implications on job security etc?

How we can help you

HS Legal Solicitors brings substantial experience in advising companies facing sponsor licence revocation:

  • Assisting with understanding the grounds for revocation
  • Advice on collating the supporting evidence
  • Advice on building a response that factors in wider business and economic implications of a revoked sponsor licence
  • Advice on remedial steps to address areas of non-compliance
  • Support in engaging with UKVI
  • Advice and support in relation to any subsequent follow-up scrutiny such as Home Office site visit

Our team of UK immigration specialists can advise on all compliance and evidentiary requirements critical to a prompt response and minimising the impact on your business operations

Sponsor Licence Suspension

Sponsor licence holders are required by law to meet a number of immigration compliance duties as part of the management of their sponsor licence. Where the Home Office alleges you have failed to meet these duties, you may face sponsor licence suspension. At this stage, employers will want to know if you can challenge a suspended sponsor licence?

Challenging a suspected breach of immigration duties

A suspended sponsor licence has the potential to impact your business by affecting your ability to hire non-EEA skilled workers.

If you have received formal notification from UKVI that your company’s Tier 2 sponsorship licence is at risk of suspension, your next steps will be business-critical.

You will be required to respond to the notification within the given timeframe.

It will be important to address the reasons given by the Home Office for the suspension. Is there a factual error in these grounds, that can be challenged with supporting evidence? Are there measures you need to take to rectify the breach?

How you respond is likely to determine the outcome of the matter.

How we can help you

HS Legal Solicitors brings substantial experience in advising companies facing sponsor licence suspension:

  • Assisting with understanding the grounds for suspension
  • Advice on collating the supporting evidence
  • Advice on remedial steps to address areas of non-compliance
  • Support in engaging with UKVI
  • Advice and support in relation to any subsequent follow-up scrutiny such as Home Office site visit

Our team of UK immigration specialists can advise on all compliance and evidentiary requirements critical to a prompt response and minimising the impact of a sponsor licence suspension on your business operations

Right to Work

UK companies found to be employing a worker who does not have permission to work in the UK face significant Home Office penalties.

Right to Work: What do employers have to do? 

The law requires all companies to check and retain evidence of each employee’s legal right to work in the UK.

In our experience, companies generally recognise their duties under the Right To Work legislation and Prevention of Illegal Working, and typically operate with policies and processes to comply with those duties.

The problem companies encounter when trying to comply with the law is that UKVI frequently change the legislation. The guidelines are hard to interpret and very often changed without any announcements.

These are clearly onerous requirements on employers, and it becomes easy to see why the civil penalty regime is as lucrative as Home Office figures testify with fines of up to £20,000 per breach.

How we can help

HS Legal Solicitors specialises in supporting UK employers with their Right to Work compliance.

As a team of immigration lawyers and former Home Office employees, we provide the guidance and assurance to help you meet your duties on an ongoing basis through legal, analytical and information technology-assisted techniques.

We are also highly experienced in challenging allegations of Right to Work non-compliance and Home Office fines and provide policy advice and support, to ensure your policies meet the frequent changes in Home Office rules.