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 Chambers; University College London (UCL) - Faculty of Laws

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 Chambers ( email )

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Gray's Inn
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United Kingdom

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

University College London (UCL) - Faculty of Laws ( email )

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

Look Chan Ho

Des Voeux Chambers ( email )

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The Landmark
Central
Hong Kong
+852 2526 3071 (Phone)
+852 2810 5287 (Fax)

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