1. What is essential for retention?
- The obligations must be counterparts (reciprocal)
- The obligations must be of high value
- The obligations must not be counterparts
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Other questions in this quiz
2. If part of a single transaction, do all obligations need to be in one contract?
- No, they can be split over several contracts
- Yes, they must all be in one contract
3. Select a mutuality principle
- a “mutual contract” is one in which obligations on each side are “causes” of each other (i.e. counterparts, so both parties have interdependent obligations)
- a "mutual contract" is one where one party has an obligation and the other can perform to a certain extent
4. Which year was Inveresk Plc v Tullis Russell Papermakers Ltd?
5. What is Bank of East Asia Ltd v Scottish Enterprise about?
- Breach of contract, party unable to pay.
- For retention to be granted, the obligations must take place contemporaneously ie. the counter obligations existed at the same time
- There does not need to be contemporaneously of obligations when seeking retention.
- Parties had no consensus ad idem