No precedence for contractual right
No precedence for contractual right
- 1991
- Times 29 October 1991, 34(1) .
In "MacJordan Construction Ltd v Brookmount Erostin Ltd" CA 23 October, it was held that where a property developer failed to set up a retention fund in breach of the terms of a building contract and became insolvent, the builder`s contractual right to have the retention fund established could not take precedence over a bank`s charge even though the bank had express notice of the building contract when its charge was executed.
EQUITABLE INTEREST
Insolvency
MACJORDAN CONSTRUCTION LTD V BROOKMOUNT EROSTIN LTD
RETENTION FUNDS
In "MacJordan Construction Ltd v Brookmount Erostin Ltd" CA 23 October, it was held that where a property developer failed to set up a retention fund in breach of the terms of a building contract and became insolvent, the builder`s contractual right to have the retention fund established could not take precedence over a bank`s charge even though the bank had express notice of the building contract when its charge was executed.
EQUITABLE INTEREST
Insolvency
MACJORDAN CONSTRUCTION LTD V BROOKMOUNT EROSTIN LTD
RETENTION FUNDS