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Consideration, Characterisation, Evaluation: Transactions at an Undervalue After Phillips v Brewin

15 Pages Posted: 1 Apr 2002  

Riz Mokal

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

Look Chan Ho

Freshfields Bruckhaus Deringer LLP

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)

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

Gower St
London WC1E OEG, WC1E 6BT
United Kingdom
+44 - (0)20 - 7679 1406 (Phone)
+44 - (0)20 - 7679 1461 (Fax)

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

South Square Chambers ( email )

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

HOME PAGE: http://www.southsquare.com/Riz_Mokal

Look Chan Ho

Freshfields Bruckhaus Deringer LLP ( email )

65 Fleet Street
London EC4Y 1HS
United Kingdom
+44 20 7936 4000 (Phone)
+44 20 7108 2089 (Fax)

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