diff --git a/internal/actions/update.go b/internal/actions/update.go
index 436b2d8..a242b4f 100644
--- a/internal/actions/update.go
+++ b/internal/actions/update.go
@@ -34,7 +34,7 @@ func Update(client container.Client, params types.UpdateParams) (types.Report, e
 
 	for i, targetContainer := range containers {
 		stale, newestImage, err := client.IsContainerStale(targetContainer)
-		shouldUpdate := stale && !params.NoRestart && (( !params.MonitorOnly && !targetContainer.IsMonitorOnly() ) || ( params.LabelPrecedence && !targetContainer.IsMonitorOnly() ))
+		shouldUpdate := stale && !params.NoRestart && !targetContainer.IsMonitorOnly(params)
 		if err == nil && shouldUpdate {
 			// Check to make sure we have all the necessary information for recreating the container
 			err = targetContainer.VerifyConfiguration()
@@ -72,12 +72,10 @@ func Update(client container.Client, params types.UpdateParams) (types.Report, e
 	UpdateImplicitRestart(containers)
 
 	var containersToUpdate []types.Container
-	if ( !params.MonitorOnly || params.LabelPrecedence ) {
-		for _, c := range containers {
-			if !c.IsMonitorOnly() {
-				containersToUpdate = append(containersToUpdate, c)
-				progress.MarkForUpdate(c.ID())
-			}
+	for _, c := range containers {
+		if !c.IsMonitorOnly(params) {
+			containersToUpdate = append(containersToUpdate, c)
+			progress.MarkForUpdate(c.ID())
 		}
 	}
 
diff --git a/internal/actions/update_test.go b/internal/actions/update_test.go
index 467439c..03fdfbf 100644
--- a/internal/actions/update_test.go
+++ b/internal/actions/update_test.go
@@ -178,22 +178,17 @@ var _ = Describe("the update action", func() {
 					false,
 					false,
 				)
-				_, err := actions.Update(client, types.UpdateParams{MonitorOnly: true})
+				_, err := actions.Update(client, types.UpdateParams{Cleanup: true, MonitorOnly: true})
 				Expect(err).NotTo(HaveOccurred())
 				Expect(client.TestData.TriedToRemoveImageCount).To(Equal(0))
 			})
 
 			When("watchtower has been instructed to have label take precedence", func() {
-				It("it should update containers with monitor only set to false", func() {
+				It("it should update containers when monitor only is set to false", func() {
 					client := CreateMockClient(
 						&TestData{
-							NameOfContainerToKeep: "test-container-02",
+							//NameOfContainerToKeep: "test-container-02",
 							Containers: []types.Container{
-								CreateMockContainer(
-									"test-container-01",
-									"test-container-01",
-									"fake-image1:latest",
-									time.Now()),
 								CreateMockContainerWithConfig(
 									"test-container-02",
 									"test-container-02",
@@ -211,8 +206,8 @@ var _ = Describe("the update action", func() {
 						false,
 						false,
 					)
-					_, err := actions.Update(client, types.UpdateParams{MonitorOnly: true, LabelPrecedence: true})
-					Expect(err).To(HaveOccurred())
+					_, err := actions.Update(client, types.UpdateParams{Cleanup: true, MonitorOnly: true, LabelPrecedence: true})
+					Expect(err).NotTo(HaveOccurred())
 					Expect(client.TestData.TriedToRemoveImageCount).To(Equal(1))
 				})
 			})
diff --git a/oryxBuildBinary b/oryxBuildBinary
new file mode 100755
index 0000000..86cbe57
Binary files /dev/null and b/oryxBuildBinary differ
diff --git a/pkg/container/container.go b/pkg/container/container.go
index 0f78f62..7f7b078 100644
--- a/pkg/container/container.go
+++ b/pkg/container/container.go
@@ -129,20 +129,43 @@ func (c Container) Enabled() (bool, bool) {
 	return parsedBool, true
 }
 
-// IsMonitorOnly returns the value of the monitor-only label. If the label
-// is not set then false is returned.
-func (c Container) IsMonitorOnly() bool {
+// IsMonitorOnly returns whether the container should only be monitored based on values of
+// the monitor-only label, the monitor-only argument and the label-take-precedence argument.
+func (c Container) IsMonitorOnly(params wt.UpdateParams) bool {
+	var containerMonitorOnlyLabel bool
+	
+	MonitorOnlyLabelIsDefined := false
+
 	rawBool, ok := c.getLabelValue(monitorOnlyLabel)
-	if !ok {
-		return false
+	if ok {
+		parsedBool, err := strconv.ParseBool(rawBool)
+		if err == nil {
+			MonitorOnlyLabelIsDefined = true
+			containerMonitorOnlyLabel = parsedBool
+		} else {
+			// Defaulting to false
+			containerMonitorOnlyLabel = false
+		}
+	} else {
+		// Defaulting to false
+		containerMonitorOnlyLabel = false
 	}
 
-	parsedBool, err := strconv.ParseBool(rawBool)
-	if err != nil {
-		return false
+	// in case MonitorOnly argument is true, the results change if the container monitor-only label is explicitly set to false if the label-take-precedence is true
+	if params.MonitorOnly  {
+		if (MonitorOnlyLabelIsDefined) {
+			if params.LabelPrecedence  {
+				return containerMonitorOnlyLabel
+			} else {
+				return true
+			}
+		} else {
+			return true
+		}
+	} else {
+		return containerMonitorOnlyLabel
 	}
 
-	return parsedBool
 }
 
 // IsNoPull returns the value of the no-pull label. If the label is not set
diff --git a/pkg/types/container.go b/pkg/types/container.go
index 752fd11..8f82033 100644
--- a/pkg/types/container.go
+++ b/pkg/types/container.go
@@ -52,7 +52,7 @@ type Container interface {
 	SafeImageID() ImageID
 	ImageName() string
 	Enabled() (bool, bool)
-	IsMonitorOnly() bool
+	IsMonitorOnly(UpdateParams) bool
 	Scope() (string, bool)
 	Links() []string
 	ToRestart() bool