ALBATOWN LIMITED v. CREDENTIAL GROUP LIMITED [2001] ScotHC 93 (24th August, 2001)

ALBATOWN LIMITED v. CREDENTIAL GROUP LIMITED [2001] ScotHC 93 (24th 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 clauses. As a result, there is no longer any obligation secured by the standard security, and it is extinguished.

Citation
[2001] ScotHC 93
Parties
Pursuer: Albatown Limited; Defender: Credential Group Limited
Jurisdiction
Scotland
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 a standard security were extinguished due to the expiry of enforceability under non-supersession clauses in the missives.
  2. 2 Whether the standard security can be enforced when 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 clauses. As a result, there is no longer any obligation secured by the standard security, and it is extinguished.

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 to be amended to reflect the extinguishing of the obligations secured by the standard security as of 2 December 1998.
  • Decree of declarator that the obligations secured by the standard security dated 11 February 1997 were extinguished on 2 December 1998.