Watch out for your dependents—the importance of careful drafting of dependent obligations in a family’s settlement agreement (Tomlinson v Tomlinson)
Dispute resolution analysis: the High Court heard two applications brought by four brothers seeking to enforce, in different ways, the terms of a Settlement Agreement reached between them, pursuant to which the three claimants were to pay a Settlement Payment to the defendant, and the defendant was to transfer legal title of certain plots of land to the claimants. The question for the court was whether, in circumstances where the defendant failed to transfer legal title, the claimants were nonetheless obliged to continue to meet the instalment payments. The court was required to consider the proper construction of the terms of the Settlement Agreement, in particular whether the obligations to pay and to transfer legal title were dependent or independent. The judge’s approach provides a helpful reminder of the need for careful drafting.
Read the full article on the LexisNexis website.
Written by Alice Whyte.
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