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Commentary

68 Appropriation of payments

BUILDING AND ENGINEERING vol 5
| Commentary

68 Appropriation of payments

| Commentary

68 Appropriation of payments

Where the employer makes a general payment on account to the contractor, without making clear the particular debt which is intended to be satisfied, the contractor has a general right in law to appropriate the payment to whatever debt it pleases1. However, such an appropriation can only be to a debt lawfully owing. Thus the contractor cannot appropriate a general payment on account to something for which it has no binding claim against the employer, such as extra work not properly ordered2 or work which is illegal for want of a licence

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