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Relatively few businesses, regardless of the fact that for reasons of flexibility and cost, use of commercial agents has markedly increased, are aware that under European law, on termination of an agency agreement, the agent may well be entitled to significant financial compensation. So in what circumstances can a principal legitimately terminate an agency agreement based on breach of contract by the agent, and be confident of not having to pay compensation ?

In a recent case, the ECJ held that there needs to be a direct causal link between a breach of contract by an agent with the principal’s decision to terminate the contract to avoid compensation but also that any breach of contract by an agent should be considered on equitable grounds as regards compensation.

Clear as mud !

A recent survey suggests that the English reticence to discuss personal matters certaionly seems to extend to lifetime planning and wills. The study suggests that some 35% of people are unaware of their parents’ wealth management plans with an even greater number having not spoken with thier parents about the whereabouts of  important financial documentation or the sissue of wills. Around six per cent claimed they were too embarrassed to enquire about inheritance, despite 25 per cent of  British people admitting that they would rely on the money in the future. perhaps most staggering of all, a consensus of reaserach suggests that some 30 million people in the UK have not made a will.

With an increasing number of people either unable to get a start on the housing ladder and with the current inertia in the conveyancing market, it is worthwhile perhaps considering that the residential letteings market will take on an ever increasing significance long term. With this in mind, the following may be trends to watch out for :-

Longer Residential Tenancies

Typically, most residential tenances tenant to currently be for a 12-month period, often with a six-month break clause, which encourages a  high degree of churn, possibly suiting neither landlord nor tenant. Statistics suggest that only  some 20% of residential tenants have remained at their current address for 5 years and some 40% move every year.  This contrasts with the position in many other European countries and there can be downsides for both Landlord & tenant such as Landlords seeking to increase rent at every iopportunity whilst tenants may not look after a property they simply see as another stop-gap address.

Provide greater protection for Landlords with tenants on benefits

From a landlords perspective, the system whereby Housing Benefit has been paid to tenants rather than them has been a source of huge problems. Regrettably, some tenants simply retain the benefit and a Landlord then has to take action, often instructing solicitors to recover possession, incurring delay and further cost. Many landlords who have been through such situations vow never to accept another tenant on benefits, in turn creating a shortage of suitable  accomodation in some areas. In fact, it also appears that tenants may prefer for hosuing costs to be paid directkl to Landlords instead, according to a survey by the Joseph Rowntree Foundation. The plans for payment of a single universal credit by the current Government may make this debate academic, but could exacerbate the problems described above.

Faster evictions

It cannot be right or fair that the process of evicting a non-paying tenant often takes 6 to 8 months or more. With more county courts closing things are going in the wrong direction.

Aspects of UK insolvency law have created considerable controversy and perhaps the most contentious area of all relates to so -called pre-pack adminsitrations or “phoenix companies”. In a recent survey carried out by a leading debt recovery organisation, as many as 96 per cent of individuals responded by saying that directors of insolvent firms should not be allowed to restart similar companies, leaving creditors with little or no funds or legal recourse.

It seems that in line with the recent increase in insolvency levels (although interestingly this seems to relate more to administrations rather than liquidations), the number of  so-called phoenix companies, starting up again and often using virtually identical names, has also increased. This creates the additional risk that customers can be misled into believing that the compnay they are dealing with is solid and trustworthy.

The counter argument against more stringent action to prevent phoenix company tactics is that often the  only alternative to a pre-pack administration is  liquidation, which may result in an even worse outcome for creditors. Frankly, we do not buy that argument.

Homebuyers seemingly ignore energy related information according to survey findings released in March 2011.

Perhaps due to the costs asociated with moving to a new home, according to the survey as many as 80% of buyers do not implement the recommendations in Energy Performance Certificates

It is now a legal requirement for sellers and landlords to provide an EPC when selling or letting a property and the reports provide easy to understand rating for energy efficiency.

The survey involved data provided by over 2,000 people in January 2011 and suggested that buyers and/or tenants hardly take any notice of the information in the certificates, making it questionable as to whether these certificates have any real value or are worthwhile on cost/benefit criteria. This is perhaps surprising given the rising costs of energy.

As any lawyer will tell you, the legal services market has been very badly hit by the recession, although part of this may be attributable also to there simply being too many lawyers and law firms in the UK. Consumer legal services, such as conveyancing, have been particularly badly hit by the credit crunch, with the conveyancing market in particular being very badly hit and showing few signs of recovery.

However, the good news is that it seems, according to very recent research, that firms offering business related advice saw a pick up in business at the fastest pace since mid-2008 in the three months to February 2011.

The research involved some 170 firms in the services sector and was conducted by or on behalf of the CBI.

A recent survey of companies in the North East of England astonishingly suggested that some two-thirds of North-east businesses have been involved in a dispute over website ownership.

A more obviously common type of dispute, involving, according to the research, approaching one in ten companies relates to the imitation of a more successful competitor website. Nearly one in five claimed that  content from their  site had been replicated without permission.

This is clearly a major issue and source of an increasing number of legal disputes although one particularly interesting aspect would clearly be whether or not it is possible to prove in court a loss linked to these issues caused by duplication or imitation.

The survey apparently involved some 400 businesses and was commissioned by a local law firm.