Trafalgar House Construction (Regions) Limited v General Surety and Guarantee Company Limited
Trafalgar House Construction (Regions) Limited v General Surety and Guarantee Company Limited
- 1994
- Construction Law Journal (1994) 10 CLJ 240-246(7) .
CA 22 February 1994. In 1989 T entered into a building contract to construct a leisure complex. The groundworks were subcontracted and they obtained a bond from the subcontractors equal to 10% of the subcontract value. Before they completed the groundwork the subcontractors went into receivership and T finished the work. T commenced proceedings against G the guarantor of the bond for the sum of £101,285. The court held that T should receive that sum on the grounds that they was no arguable defence. G appealed but this was dismissed on the grounds that the obligation of the surety arose when called upon to pay any damages resulting from the subcontractors failure to perform.
CONDITIONAL BONDS
Insolvency
LEISURE COMPLEX
ON-DEFAULT BONDS
ON-DEMAND BONDS
PERFORMANCE BONDS
SURETIES
SURETY BOND
CA 22 February 1994. In 1989 T entered into a building contract to construct a leisure complex. The groundworks were subcontracted and they obtained a bond from the subcontractors equal to 10% of the subcontract value. Before they completed the groundwork the subcontractors went into receivership and T finished the work. T commenced proceedings against G the guarantor of the bond for the sum of £101,285. The court held that T should receive that sum on the grounds that they was no arguable defence. G appealed but this was dismissed on the grounds that the obligation of the surety arose when called upon to pay any damages resulting from the subcontractors failure to perform.
CONDITIONAL BONDS
Insolvency
LEISURE COMPLEX
ON-DEFAULT BONDS
ON-DEMAND BONDS
PERFORMANCE BONDS
SURETIES
SURETY BOND