We have been working with care homes to update their contracts and advise on the risks of charging the resident a regular “top-up” or additional fee where a resident is funded through NHS CHC
- Charities can only act within their objects and powers — charities are always set up to achieve specific objectives (such as advancement of religion, relief of poverty, etc.) and must act within the powers listed in their governing document. If the trustees act outside these objects and powers when contracting with you, the contract may be invalid.
- Charities can make a profit! — whilst charities are not allowed to distribute profit, that does not mean that they cannot make a surplus. Charities are becoming increasingly commercially savvy, and you can expect most charities will give particular attention to the payment and termination provisions in the contract. Savvy trustees may also try to limit the scope of their liability to the value of the assets that they hold on behalf of the charity.
- Who is drafting the contract? — many larger charities will have a range of standard-form contracts that they use when contracting with third parties or may have specific bespoke clauses that they need to go into the contract. If you choose to use a bespoke contract or your own standard-form agreement, this is likely to slow down the negotiation process, and it could take longer to complete the contract.
- Who are you contracting with? — you can contract directly with the charity if it is a corporate entity (such as a company limited by guarantee). If the charity is an unincorporated association or trust, you will be contracting with the individual trustees of the charity. In this instance, you will need to ensure that the trustees are all individually named as a party to the contract.
- Make sure the contract is validly executed — if a charity is a corporate entity, depending on the nature of the contract, it can be signed by trustees or other authorised signatories on behalf of the charity. If you are contracting with an unincorporated charity, the situation is different. The general position is that all of the trustees need to sign the contract unless there is a scheme of delegated authority or the charity has passed a section 333 resolution in accordance with the Charity Act 2011.
- Allow time for the contract to be signed — contracts that need to be signed by charity trustees can take longer to complete because most Boards of Trustees do not generally meet as often as a commercial board of directors. It is wise to allow extra time for this when negotiating your contract and any associated project plans or milestones.
We have a dedicated business law team experienced in acting for a range of private, public and third-sector clients. If you have any queries, please contact Rebecca Ward.
The parliamentary processes are complete and the Restriction of Public Exit Payments Regulations 2020 (“the Regulations”) which cap exit payments in the public sector at £95,000 will be in force from 4 November.
As the UK’s social housing sector recovers from the initial Covid-19 outbreak and lockdown, now is the time to focus on the challenges that may emerge next.
There is no universal approach to regenerating town centres. However, housing must be considered a key part of any regeneration project – providing well-needed new homes and economic growth.
Friday 16 October marks the 6th annual Wear Red Day in England, Wales and Scotland. Wear Red Day is the brainchild of the charity; Show Racism the Red Card (SRTRC). SRTRC aims to educate young people so they are equipped to recognise and challenge stereotypes, misconceptions and negative attitudes towards race.
Alongside the Building Safety Bill published in July 2020, the Fire Safety Bill is a key step in the Government’s strategy to improve building and fire safety in the wake of the Grenfell Tower tragedy
Government regulations came into force on 23 September 2020 providing LGPS (local government pension scheme) employers with flexibility on meeting exit payments and LGPS funds with flexibility too
Charity Financials, the financial information program from Wilmington Charities, has published its latest Income Monitor report.
As employers face the end of the Coronavirus Job Retention Scheme on 31 October 2020, Katherine Sinclair and Libby Hubbard discuss the intricacies of the redundancy process for furloughed employees.
We have learned many things over the last six months; the latest lesson is that there is no new normal. The Government initiatives and guidance may have slowed down a pace, but the challenges for employers and their employees remain.
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