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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The original publication date for this article was 22/03/2010.