How to Draft Overage Clauses & Agreements
Drafting and negotiating overage clauses and agreements involves dealing with complex documents containing tricky clauses.
It is all too easy to get the drafting of these clauses wrong as shown by the many recent cases, most of which arise out of drafting errors. Similarly, it can be difficult to know what amendments to make when receiving a document from the other side.
This new course will focus entirely on drafting overage agreements and clauses - both the initial drafting of clauses and the drafting of amendments to clauses using a number of ‘real life’ examples.
What You Will Learn
This course will cover the following:
- Defining the trigger event(s) - including dealing with planning, sales and commencement of development
- What is "planning permission"? Should it be defined?
- Creating formulae for calculation of overage
- Traps including:
- What happens if the mechanism for calculating the overage fails? How can you provide for this?
- What happens if the land is developed but there is no need for planning permission?
- Defining how the land is to be valued
- What happens if the seller dies before overage is due?
- What happens if the buyer sells the land before overage is due?
- What happens if the buyer becomes insolvent? How can this best be provided for?
- Conflict between reasonable endeavours clauses and overage clauses
- Lessons from recent cases, including Sparks v Biden, Burrows v Ward, Gaia v Abbeygate, London & Ilford v Sovereign
Please let us know if you wish to be notified when new dates are added for this programme