A Court of Appeal decision from last Thursday confirms that to be effective "pay-when-paid" clauses in construction contracts need to be drafted to identify the specific types of insolvency situation where the clause will operate. We consider in two articles the implications of this case for construction contracts (Administration through an out of court method not caught by "pay when paid" clause) (http://tinyurl.com/ylmfudl) and for insolvency situations generally (Keep your insolvency event clauses up to date) (http://tinyurl.com/yg8sxkz).
Reference: William Hare Limited v Shepherd Construction Limited [2010] EWCA Civ 283 (http://tinyurl.com/ylb8nsv).
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Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 22/03/2010.
