Lloyds Bank v Bamberger [1993] ScotCS CSIH_6 (07 July 1993)

Lloyds Bank v Bamberger [1993] ScotCS CSIH_6 (07 July 1993)

The right to interest on the purchase price under condition 2 of the missives does not survive rescission of the contract by the seller. The clause providing for interest applies only where the contract is performed and the price is ultimately paid. Upon rescission, the seller cannot claim interest on a price they are no longer willing to accept, and the contract does not provide for interest to accrue up to the date of rescission. The appeal is therefore refused.

Citation
[1993] ScotCS CSIH_6
Parties
Pursuer/appellant: Lloyds Bank plc; Defender/respondent: Bamberger; Third Party: Montagu Evans, chartered surveyors, Glasgow
Jurisdiction
Scotland
Judgment Date
07 July 1993
Procedural Posture
Civil Appeal / Appeal From Sheriff Court to Court of Session (inner House)
Outcome
appeal refused; sheriff's interlocutor affirmed; action dismissed
Legal Topics
Rescission of Contract, Accrued Rights, Interest on Purchase Price, Breach of Contract, Construction of Contractual Clauses
Contract Law Property Law Rescission of Contract Accrued Rights Interest on Purchase Price Breach of Contract Construction of Contractual Clauses

Case Brief

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Parties

Lloyds Bank plc

Pursuer/appellant

Bamberger

Defender/respondent

Montagu Evans, chartered surveyors, Glasgow

Third Party

Procedural Posture

Civil Appeal / Appeal From Sheriff Court to Court of Session (inner House)

Legal Issues

  1. 1 Whether a contractual right to interest on the purchase price survives rescission of the contract by the seller due to the purchaser's breach
  2. 2 Proper construction of condition 2 of the missives regarding interest and rescission

Ratio Decidendi

The right to interest on the purchase price under condition 2 of the missives does not survive rescission of the contract by the seller. The clause providing for interest applies only where the contract is performed and the price is ultimately paid. Upon rescission, the seller cannot claim interest on a price they are no longer willing to accept, and the contract does not provide for interest to accrue up to the date of rescission. The appeal is therefore refused.

Court Disposition

appeal refused; sheriff's interlocutor affirmed; action dismissed

Orders

  • Appeal refused
  • Sheriff's interlocutor affirmed