The Supreme Court gave judgment last Wednesday in MacDonald v Carnbroe Estates Ltd (Scotland) [2019] UKSC 57. A summary of the judgment is available here (pdf). The court considered the meaning of the expression 'adequate consideration' as used in section 242 (Gratuitous alienations (Scotland)) of the Insolvency Act 1986 and unanimously held that it was to determined according to an objective test, with regard to the commercial justification of the transaction and assuming that the parties would be acting in good faith and at arm's length.
Monday, 9 December 2019
UK: Supreme Court considers meaning of 'adequate consideration'
The Supreme Court gave judgment last Wednesday in MacDonald v Carnbroe Estates Ltd (Scotland) [2019] UKSC 57. A summary of the judgment is available here (pdf). The court considered the meaning of the expression 'adequate consideration' as used in section 242 (Gratuitous alienations (Scotland)) of the Insolvency Act 1986 and unanimously held that it was to determined according to an objective test, with regard to the commercial justification of the transaction and assuming that the parties would be acting in good faith and at arm's length.
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