Routine and bespoke undertakings

This section distinguishes between Routine Undertakings and Bespoke Undertakings.

A Routine Undertaking is usually given by a lawyer in the course of a transaction (typically a corporate or property transaction) without the client's express consent. If an undertaking is routine in nature but it relates to a sum of money in excess of £3,000 (inc VAT), or where it relates solely to the professional fees of the other side, then in excess of £7,500 (inc VAT), then it should be treated as a Bespoke Undertaking. Completion of property sales using the Law Society's formulae are treated as Routine Undertakings.

When you give a Routine Undertaking, you should blind-copy undertakings@keystonelaw.co.uk on the relevant email. For property sales please remember to blind-copy undertakings@keystonelaw.co.uk when you issue the TA13 (Completion Information and Undertakings) to the Buyer's Solicitors. This will ensure that the Register of Undertakings is kept up to date. Routine Undertakings can be removed from the register by forwarding to undertakings@keystonelaw.co.uk an express release from the addressee. If this is not possible, other conclusive documents to show an unequivocal release may be acceptable.

A Bespoke Undertaking is any undertaking that is not routine in nature or relates to a sum of money in excess of £3,000. Bespoke Undertakings require approval from undertakings@keystonelaw.co.uk.You should use the following procedure when granting a Bespoke Undertaking:

1. Amend the undertaking so it meets with our requirements and uses where possible, our templates. You can seek guidance on a draft well before completion. You must not finally agree an undertaking with the other side until it has received written approval from undertakings@keystonelaw.co.uk.
2. Ensure sufficient funds are held in the Client Account (money undertakings only).
3. Send the client (bcc to undertakings@keystonelaw.co.uk) a completed Undertaking Request.
4. Forward the signed Undertaking Request to undertakings@keystonelaw.co.uk with a copy of the amended draft undertaking. You may sign undertakings yourself, subject to compliance with our rules, but on occasion certain other firms prefer a principal of the firm to sign. If so, you should alert undertakings@keystonelaw.co.uk.
5. Wait for approval from undertakings@keystonelaw.co.uk before proceeding.
6. Once approved, issue undertaking (bcc to undertakings@keystonelaw.co.uk) to addressee.
7. If you need to remit funds to a third party pursuant to an undertaking, then the signed Undertaking Request takes the place of a CAT. In all other respects, the rules on moving client monies apply.
8. Perform the undertaking; it is a good tip when doing so, to include in your correspondence the phrase "in satisfaction of our undertaking of [date], please find enclosed etc.". You should ask for the addressee to confirm receipt and to provide an express written release. In some cases and in the absence of an express release, then confirmation of receipt of something sent in satisfaction of an undertaking may be adequate for our internal records to show we have performed it. However, an express release is always preferred.