Lecture notes
Contract law
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- City University (City)
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L8 ~ Interpretation of TermsWednesday, December 1, 2021 09:15
-interpretation/construction — same meaning different
words
-interpretation:
-determining the tue meaning of the text
-starting point is the text but there are also other
factors to take into account
-important to determine the obligations of the parties
-interpretation of contract is done by courts.
Principles of interpretation ~
-The court will seek to give effect to the intentions of
the parties.
-Objective assessment based on ::
-the text of the contract
-the surrounding circumstances.
-Intention is determined by reference to the
expressed, rather than actual intention of the parties
(objective approach).
-Deutsche Genossenschaftsbank v
Burnhope [1995].
-The traditional approach [until 1997] — literal
approach:
-Lovell & Christmas Ltd v Wall (1911) —
-interpretation according to the ordinary
grammatical meaning of the words used.
-traditional approach was the literal
approach
-the interpretations should be in
accordance to the ordinary English and
grammatical meaning of the words.
-Modern approach- contextual approach:
-Marley v Rawlings [2014] —
- taking into account a number of factors,
but ignoring the subjective intentions.
The contextual approach ~
-Lord Hoffmann explaining the approach in Investors
Compensation Scheme Ltd v West Bromwich Building
Society [1997] , stated that the court should consider:
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