Longmore LJ said: ‘when alternative constructions are available one has to consider which is the more commercially sensible . . The judge said that it did not flout common sense to say that the clause provided for a very limited level of release, but that, with respect, is not quite the way to look at the matter. If a clause is capable of two meanings, as on any view this clause is, it is quite possible that neither meaning will flout common sense. In such circumstances, it is much more appropriate to adopt the more, rather than the less, commercial construction.’
Judges:
Longmore, Jacob, LLJ, Kitcin J
Citations:
[2011] 1 BCLC 336, [2010] EWCA Civ 1248
Links:
Jurisdiction:
England and Wales
Citing:
Cited – HHY Luxembourg Sarl and Another v Barclays Bank Plc and Others ChD 23-Sep-2010
. .
Cited by:
Approved – Rainy Sky Sa and Others v Kookmin Bank SC 2-Nov-2011
Commercial Sense Used to Interpret Contract
The Court was asked as to the role of commercial good sense in the construction of a term in a contract which was open to alternative interpretations.
Held: The appeal succeeded. In such a case the court should adopt the more, rather than the . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 26 August 2022; Ref: scu.425796