Beware of contracts nonsense
Klein, R.
Beware of contracts nonsense - 2005 - Construction News (6907) 10 March 2005, 15(1) .
Describes "Koch Hightex v New Millennium Experience Company" ([1999] EWCA Civ ?, [2000] CILL 1595) which is an example of where a clause is written which requires contractors and subcontractors to provide guarantees or bonds as a condition precedent to payment. Explains that these clauses are usually meaningless because they are not well understood and the courts will usually interpret the contract in a way that works against the party that wrote the contract. The New Millennium's payment clause was dismissed as commercial nonsense by the judge as it insisted upon Koch Hightex providing the work without payment until the necessary security was achieved.
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
KOCH HIGHTEX GMBH V NEW MILLENNIUM EXPERIENCE COMPANY LTD
CONTRACT CLAUSES
GUARANTEES
BONDS
Beware of contracts nonsense - 2005 - Construction News (6907) 10 March 2005, 15(1) .
Describes "Koch Hightex v New Millennium Experience Company" ([1999] EWCA Civ ?, [2000] CILL 1595) which is an example of where a clause is written which requires contractors and subcontractors to provide guarantees or bonds as a condition precedent to payment. Explains that these clauses are usually meaningless because they are not well understood and the courts will usually interpret the contract in a way that works against the party that wrote the contract. The New Millennium's payment clause was dismissed as commercial nonsense by the judge as it insisted upon Koch Hightex providing the work without payment until the necessary security was achieved.
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
KOCH HIGHTEX GMBH V NEW MILLENNIUM EXPERIENCE COMPANY LTD
CONTRACT CLAUSES
GUARANTEES
BONDS