Consideration, Characterisation, Evaluation: Transactions at an Undervalue after Phillips V Brewin

15 Pages Posted: 1 Apr 2002

See all articles by Riz Mokal

Riz Mokal

South Square; University College London - Faculty of Laws; University of Aberdeen - School of Law

Look Chan Ho

Des Voeux Chambers

Abstract

This paper takes the opportunity presented by the House of Lords' decision in Phillips v Brewin to examine the law governing the reversal of transactions at an undervalue entered into by a company which then becomes insolvent. The paper discusses the sequence in which issues related to ascertaining whether a transaction had been at an undervalue are to be approached, the proposition that contracts somehow "linked" with each other can be taken together as constituting a single "transaction" , and the prior question about when such contracts should be considered "linked" in the first place. Finally, the paper detects something of a tendency in the case law to use the notion of a transaction at an undervalue to brush aside inconveniences arising from the peculiarities in the way certain cases have been pleaded. Notably, it suggests that Phillips v Brewin might not have involved any transaction at an undervalue at all.

This is a somewhat updated version of the published article.

Keywords: English law, corporate insolvency, bankruptcy, fraudulent preference law

JEL Classification: K19, K22, K49

Suggested Citation

Mokal, Riz and Ho, Look Chan, Consideration, Characterisation, Evaluation: Transactions at an Undervalue after Phillips V Brewin. Available at SSRN: https://ssrn.com/abstract=303899 or http://dx.doi.org/10.2139/ssrn.303899

Riz Mokal (Contact Author)

South Square ( email )

3-4 South Square
Gray's Inn
London, WC1R 5HP
United Kingdom

HOME PAGE: http://southsquare.com/barristers/riz-mokal/

University College London - Faculty of Laws

Bentham House
4-8 Endsleigh Gardens
London, WC1E OEG
United Kingdom

HOME PAGE: http://www.ucl.ac.uk/laws/

University of Aberdeen - School of Law ( email )

Taylor Building
King's College
Aberdeen, Scotland AB24 3UB
United Kingdom

Look Chan Ho

Des Voeux Chambers ( email )

38/F Gloucester Tower
The Landmark
Central
Hong Kong
+852 2526 3071 (Phone)
+852 2810 5287 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
244
Abstract Views
2,252
Rank
227,861
PlumX Metrics