What You Should Know Before Signing That Letter of Guarantee

Written by: Ian Chiang* I. Introduction With COVID-19 hitting the economy hard, many smaller businesses and employees are struggling to stay afloat. Someone you know, such as your friends or relatives, could be looking for loans to tide them through this period. If so, they may ask you to sign a letter of guarantee. What … Continue reading What You Should Know Before Signing That Letter of Guarantee

When Employees Leave: Confidentiality and Non-Compete Clauses

Written by: Nicole S Ng* I. Introduction When good employees leave, there is often a risk that they will join a competitor or set up a competing business. If you are the employer, the employment contract might protect your interests through a confidentiality clause preventing the employee from using or disclosing confidential information. It might … Continue reading When Employees Leave: Confidentiality and Non-Compete Clauses

Surviving flow-down liability for liquidated damages: a guide for subcontractors

Liquidated damages (“LD”) clauses are a common measure for an employer to mitigate against delays caused by the main contractor. This same clause is often featured in subcontracts – they minimize the main contractor’s exposure to liability for delays caused by the subcontractor, and pass down the liability for LDs to the subcontractor. Unsurprisingly, LD clauses are one of the most common causes of disputes between main contractors and subcontractors as the payable amount can be quite substantial. This commentary will seek to explain the potential liability of a subcontractor for LDs arising from delays, and consider possible defences to be raised.