Grove and Briscoe -v- Baker [2005] JRC 095 (11 July 2005)

Grove and Briscoe -v- Baker [2005] JRC 095 (11 July 2005)

The failures to pay interest on due dates were not sufficiently serious to justify termination of the contract, but it was an implied term that the loan was repayable on formal demand, which was made by the plaintiffs. Therefore, the plaintiffs are entitled to repayment of the capital and interest.

Citation
[2005] JRC 095
Parties
Plaintiff: Eric Grove; Plaintiff: Louise Briscoe; Defendant: Leslie Ernest Baker
Jurisdiction
Jersey
Judgment Date
11 July 2005
Procedural Posture
Civil / Judgment
Outcome
judgment for the plaintiffs
Legal Topics
Loan Agreements, Implied Terms, Termination of Contract, Repayment on Demand, Interest Payments
Contract Law Commercial Law Loan Agreements Implied Terms Termination of Contract Repayment on Demand Interest Payments

Case Brief

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Parties

Eric Grove

Plaintiff

Louise Briscoe

Plaintiff

Leslie Ernest Baker

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether failure to pay interest on due dates entitled plaintiffs to terminate the contract and demand repayment of capital
  2. 2 Whether an implied term existed making the loan repayable on demand
  3. 3 Whether persistent failure to pay interest constituted an event of default justifying termination

Ratio Decidendi

The failures to pay interest on due dates were not sufficiently serious to justify termination of the contract, but it was an implied term that the loan was repayable on formal demand, which was made by the plaintiffs. Therefore, the plaintiffs are entitled to repayment of the capital and interest.

Court Disposition

judgment for the plaintiffs

Orders

  • Defendant to repay the principal sum of £83,333 to the plaintiffs
  • Defendant to pay accumulated interest at 25% per annum as agreed