A right of retention against unfulfilled obligations does not apply if those conditions came to be fulfilled. Where both sides are to perform a contract in stages, ‘the counter obligation and consideration for payment of stage one is the completion of the work for that stage conform to contract’ and ‘It follows that retention may be operated against corresponding obligations prestable but unfulfilled, but has no relevance to obligations duly performed.’
Judges:
Lord Jauncey
Citations:
Times 24-Jan-1996, 1997 SLT 1213
Jurisdiction:
Scotland
Cited by:
Cited – Luigi Macari v Celtic Football and Athletic Co Ltd SCS 8-Jun-1999
One of the issues was whether Mr Macari had been entitled to refuse to carry out the instructions of the managing director because the club were in breach of another obligation to him under the contract between the parties.
Held: In the . .
Cited – Inveresk Plc v Tullis Russell Papermakers Ltd SC 5-May-2010
The parties had undertaken the sale of a business (from I to TR) with part of the consideration to be payable on later calculation of the turnover. The agreement provided for an audit if the parties failed to agree. TR issued a figure. I argued that . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 08 May 2022; Ref: scu.78154