Competition Act 1998 to apply to Property Contracts

Practical advice

As of April 2011, restrictive covenants and clauses in UK property contracts (for example Retail leases and property sales) will be subject to competition law. As a result covenants and clauses which breach competition law will be void and unenforceable. The parties who impose such clauses may also face other sanctions and remedies available following breaches of competition law, including claims for damages by third parties. This repeal will result in the Competition Act 1998 applying to existing contracts which were signed before April 2011, as well as to new contracts. It is important that Landlords, Tenants and all other parties to property contracts review the terms of their contracts to check whether they will need to be varied before the repeal takes effect in April 2011. 

Contact

If you have any questions about this issue or any competition law issues please contact Julian Maitland-Walker on 01643 707777 or by email on jmw@maitlandwalker.com. For Commercial Property advice, please contact Ben Slade on 01643 707777 or by email on ben.slade@maitlandwalker.com.