Johnson and Smart (Projects) Ltd v Sinclair & Ors [2011] ScotCS CSOH_166 (13 October 2011)

Johnson and Smart (Projects) Ltd v Sinclair & Ors [2011] ScotCS CSOH_166 (13 October 2011)

The agreement to render invoices and allow a period of grace before enforcement did not amount to a condition precedent postponing the due date of the debt; the obligation to pay arose when the goods or services were supplied, and the prescriptive period began then. The claim is prescribed.

Citation
[2011] ScotCS CSOH_166
Parties
Pursuer: Johnson & Smart (Projects) Ltd; Defender: Angus Sinclair
Jurisdiction
Scotland
Judgment Date
13 October 2011
Procedural Posture
Civil Action for Payment (contract/debt) / Outer House, Court of Session – Opinion on Prescription Plea
Outcome
Defender's plea of prescription upheld; decree of absolvitor granted.
Legal Topics
Prescription, Limitation of Actions, Debt Recovery, Enforceability of Obligations
Contract Law Civil Procedure Prescription Limitation of Actions Debt Recovery Enforceability of Obligations

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Parties

Johnson & Smart (Projects) Ltd

Pursuer

Angus Sinclair

Defender

Procedural Posture

Civil Action for Payment (contract/debt) / Outer House, Court of Session – Opinion on Prescription Plea

Legal Issues

  1. 1 Whether the pursuers' claim for payment is extinguished by prescription under the Prescription and Limitation (Scotland) Act 1973
  2. 2 Whether the parties' agreement regarding invoicing and periods of grace postponed the start of the prescriptive period

Ratio Decidendi

The agreement to render invoices and allow a period of grace before enforcement did not amount to a condition precedent postponing the due date of the debt; the obligation to pay arose when the goods or services were supplied, and the prescriptive period began then. The claim is prescribed.

Court Disposition

Defender's plea of prescription upheld; decree of absolvitor granted.

Orders

  • Decree of absolvitor in favour of the defender.