Organic Group Ltd v Charterhouse Macmillan Group Inc

Organic Group Ltd v Charterhouse Macmillan Group Inc

The Consultancy Agreement is not void for uncertainty; the sums are payable regardless of whether services were provided, as the contract is a retainer and the defendant cannot rely on its own failure to request services as a defence. There was no total failure of consideration.

Parties
Claimant/appellant: Organic Group Limited; Defendant/respondent: Charterhouse Macmillan Group Inc
Jurisdiction
England and Wales
Judgment Date
01 May 2007
Procedural Posture
Civil Appeal / Appeal From Master's Decision on Setting Aside Default Judgment
Outcome
appeal allowed; Master's decision reversed; default judgment reinstated
Legal Topics
Consultancy Agreements, Failure of Consideration, Void for Uncertainty, Agreement to Agree, Implied Terms
Contract Law Consultancy Agreements Failure of Consideration Void for Uncertainty Agreement to Agree Implied Terms

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Parties

Organic Group Limited

Claimant/appellant

Charterhouse Macmillan Group Inc

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Master's Decision on 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 no services being provided
  3. 3 Whether the sums under the agreement are payable regardless of services rendered

Ratio Decidendi

The Consultancy Agreement is not void for uncertainty; the sums are payable regardless of whether services were provided, as the contract is a retainer and the defendant cannot rely on its own failure to request services as a defence. There was no total failure of consideration.

Court Disposition

appeal allowed; Master's decision reversed; default judgment reinstated

Orders

  • Default judgment in favour of claimant stands