Organic Group Ltd v Charterhouse Macmillan Group Inc [2007] EWHC 1275 (QB) (01 May 2007)

Organic Group Ltd v Charterhouse Macmillan Group Inc [2007] EWHC 1275 (QB) (01 May 2007)

The Consultancy Agreement is a valid and binding contract of retainer; the sums claimed are due regardless of whether services were provided, as the agreement does not require actual performance for payment. The contract is not void for uncertainty, and there is no total failure of consideration.

Citation
[2007] EWHC 1275 (QB)
Parties
Claimant/appellant: Organic Group Limited; Defendant/respondent: Charterhouse Macmillan Group Inc
Jurisdiction
England and Wales
Judgment Date
01 May 2007
Procedural Posture
Appeal / Appeal Against Master's Order Setting Aside Default Judgment
Outcome
Appeal allowed; Master's decision reversed; default judgment restored.
Legal Topics
Certainty of Contract, Failure of Consideration, Consultancy Agreements, Implied Terms, Retainer Agreements
Contract Law Certainty of Contract Failure of Consideration Consultancy Agreements Implied Terms Retainer Agreements

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Parties

Organic Group Limited

Claimant/appellant

Charterhouse Macmillan Group Inc

Defendant/respondent

Procedural Posture

Appeal / Appeal Against Master's Order Setting Aside Default Judgment

Legal Issues

  1. 1 Whether the Consultancy Agreement is void for uncertainty
  2. 2 Whether there was a total failure of consideration due to non-performance of services
  3. 3 Whether the sums claimed are due regardless of services rendered

Ratio Decidendi

The Consultancy Agreement is a valid and binding contract of retainer; the sums claimed are due regardless of whether services were provided, as the agreement does not require actual performance for payment. The contract is not void for uncertainty, and there is no total failure of consideration.

Court Disposition

Appeal allowed; Master's decision reversed; default judgment restored.

Orders

  • Default judgment in favour of the claimant stands.