United Kingdom: Contracts and Commercial Law

Geopolitical developments are increasingly influencing UK credit conditions and shaping finance transactions. This article examines how energy volatility, supply chain disruption, sanctions risk, and heightened uncertainty are affecting credit analysis, due diligence processes, and finance documentation across UK lending markets.

Manchester City's guilty verdict for financial rule breaches has created a commercial crisis extending far beyond the football pitch. Sponsors are examining exit clauses, rival clubs are considering damages claims, and the case exposes a critical question for any business in a regulated market: does your contract protect you when your partner breaks the rules?

At Tees, we advise businesses and individuals involved in disputes about whether a signature on a contract or other legal document is genuine.

Contractor insolvency poses a significant threat to construction projects, with nearly 4,000 construction businesses entering insolvency in 2025 alone. Collateral warranties from sub-contractors can provide crucial protection by creating direct contractual relationships that preserve rights of recourse when main contractors fail. Understanding how these warranties work alongside due diligence and performance security can help developers, funders, and other stakeholders manage risk effectively.

When a multi-tiered dispute resolution clause uses permissive language like "may" instead of "must," can parties still be compelled to arbitrate? The Circuit Commercial Court examines whether vague mediation provisions can block arbitration and how courts interpret poorly drafted dispute resolution clauses in joint venture agreements.

The length of a commercial lease shapes far more than occupancy duration—it influences cash flow, negotiating leverage, expansion flexibility, market exposure, and exit options. While longer terms can provide stability and justify fit-out investments, they may create liability if business needs change, whereas shorter terms preserve agility but can limit landlord incentives and increase renegotiation frequency. Understanding how lease terms interact with break clauses, renewal rights, rent reviews...

These days, a risk free M&A deal may be possible, as warranty and indemnity insurance (W&I) is now available for deals of all sizes. W&I policies were created for mega deals (international deals between companies and private equity investors), where sellers were unwilling to give commercial/tax warranties.

The mid-market M&A landscape continues to evolve in response to political and economic pressures and changing investor expectations. Buyers remain highly selective, focusing on businesses with recurring revenues, clear growth prospects and strong governance, while deal processes have become more disciplined with deeper diligence and increased use of earn-outs and deferred consideration structures.

A Technology and Construction Court case examines whether a sub-contractor can recover payment from a main employer when a project bank account was never established, despite contractual requirements. The judgment explores the enforceability of NEC4 clause Y(UK)1 provisions and third-party rights under trust deed arrangements.