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
3. 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
4. What is essential for retention?
The obligations must be counterparts (reciprocal)
The obligations must be of high value
The obligations must not be counterparts
5. What was the main point in Inveresk Plc v Tullis Russell Papermakers Ltd?
obligations presumed to be counterparts unless clear indication to contrary
The specified contract must be thorough to enable performance
A judge must be sought in times of dispute
For retention to be granted, the obligations must take place contemporaneously ie. the counter obligations existed at the same time
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