McMillan Williams (a firm) v Range

McMillan Williams (a firm) v Range

The essential nature of the contract was for payment in advance of services to be rendered, not for the provision of credit. At the time the contract was made, it was impossible to determine whether the respondent would be a debtor or creditor at the time of calculation. Therefore, the arrangement did not constitute a regulated credit agreement under the Consumer Credit Act 1974.

Parties
Appellant: McMillan Williams; Respondent: Sarah Range
Jurisdiction
England and Wales
Judgment Date
17 March 2004
Procedural Posture
Civil Appeal / Appeal From Brighton County Court on Preliminary Issue
Outcome
Appeal allowed
Legal Topics
Employment Contracts, Remuneration, Consumer Credit Act 1974, Misrepresentation

Case Brief

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Parties

McMillan Williams

Appellant

Sarah Range

Respondent

Procedural Posture

Civil Appeal / Appeal From Brighton County Court on Preliminary Issue

  1. 1 Whether the employment contract constituted a regulated credit agreement under the Consumer Credit Act 1974
  2. 2 Whether advances paid to the respondent were 'credit' within the meaning of the Act
  3. 3 Whether the agreement was exempt under section 16 of the Act

Ratio Decidendi

The essential nature of the contract was for payment in advance of services to be rendered, not for the provision of credit. At the time the contract was made, it was impossible to determine whether the respondent would be a debtor or creditor at the time of calculation. Therefore, the arrangement did not constitute a regulated credit agreement under the Consumer Credit Act 1974.

Court Disposition

Appeal allowed

Orders

  • Declaration that the agreement is enforceable and not a regulated credit agreement under the Consumer Credit Act 1974
  • Respondent to pay appellant's costs of the preliminary issue in the court below, payable at the same time as remaining costs of the claim and counterclaim