Albatown Ltd v Credential Group Ltd [2001] ScotCS 211 (24 August 2001)

Albatown Ltd v Credential Group Ltd [2001] ScotCS 211 (24 August 2001)

The personal obligation to pay the purchase price, as constituted by the missives and secured by the standard security, ceased to be enforceable on 2 December 1998 due to the operation of the non-supersession clause, and thus the standard security no longer secured any obligation.

Citation
[2001] ScotCS 211
Parties
Pursuer: Albatown Limited; Defender: Credential Group Limited
Jurisdiction
Scotland
Judgment Date
24 August 2001
Procedural Posture
Civil / Outer House, Court of Session, Opinion After Debate on Relevancy and Competency
Outcome
Decree of declarator granted in favour of the pursuers; defences repelled; summons amended as sought; decree de plano granted; expenses reserved.
Legal Topics
Standard Security, Extinction of Obligations, Non Supersession Clauses, Enforceability of Missives
Property Law Contract Law Secured Transactions Standard Security Extinction of Obligations Non Supersession Clauses Enforceability of Missives

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Parties

Albatown Limited

Pursuer

Credential Group Limited

Defender

Procedural Posture

Civil / Outer House, Court of Session, Opinion After Debate on Relevancy and Competency

Legal Issues

  1. 1 Whether the obligations secured by the standard security were extinguished due to the expiry of enforceability under the missives' non-supersession clause
  2. 2 Whether the standard security remains enforceable after the underlying personal obligation has expired

Ratio Decidendi

The personal obligation to pay the purchase price, as constituted by the missives and secured by the standard security, ceased to be enforceable on 2 December 1998 due to the operation of the non-supersession clause, and thus the standard security no longer secured any obligation.

Court Disposition

Decree of declarator granted in favour of the pursuers; defences repelled; summons amended as sought; decree de plano granted; expenses reserved.

Orders

  • Summons amended to reflect declarator that obligations secured by the standard security were extinguished on 2 December 1998.
  • Decree de plano granted in those terms.