Locations
This phrase was recently examined by the Supreme Court in the context of receiver appointments and a case of McCann v Halpin 2016 IESC 11. On dismissing the High Court Appeal Laffoy J affirmed that in this instance the receiver had been validly appointed, where a letter of demand required that payment be made prior to “Close of Business” on a particular date and in default, a receiver would be appointed. A receiver was appointed just after 4pm on the same date.
The Court held that the end of a banking business day, is the point in time when the relevant bank ceases to do business with its customers. This case provides a useful confirmation that certainly in a banking context, “Close of Business” still means 4pm. However such a phrase is likely to be interpreted differently depending on the nature of the business concerned. A wise solution to this issue would be to avoid the use of such stock phrases or to provide clear and concise definitions, particularly in terms of ‘notice’ periods, where such phrasing is relied upon.
Please click here McCann v Halpin & anor 2016 IESC 11 for a link to the full judgment.