The claimant sought the determination of the court as to the interpretation of parts of a currency swap and derivatives agreement. Upon termination of the contract, it provided means to calculate the balances due between the parties, and the valuation to be placed upon certain investments. The claimants asserted that the strict method used in the contract provided a commercially unreasonable result. Alternative methods of calculation had been provided. The choice of method was to be determined according to whether one party was in default. The definition of ‘Loss’ is directed to identifying the loss suffered as a result of the termination of the transaction in question and is not concerned with the steps which taken to fund any payment required pursuant to Section 6(e) of the agreement.
Held: A court should not see behaviour in the absence of any allegation of absence of good faith or as unjustified or involving a breach of contract, unless it is clear that the belief in which he acted was flawed in one of the ways identified in the Wednesbury case. The court could not think that anyone who had taken them into account could have concluded that the use of Market Quotation would produce a commercially reasonable result.
The Honourable Mr Justice Moore-Bick
[2000] EWHC Commercial 99
Bailii
England and Wales
Citing:
Cited – Associated Provincial Picture Houses Ltd v Wednesbury Corporation CA 10-Nov-1947
Administrative Discretion to be Used Reasonably
The applicant challenged the manner of decision making as to the conditions which had been attached to its licence to open the cinema on Sundays. It had not been allowed to admit children under 15 years of age. The statute provided no appeal . .
Lists of cited by and citing cases may be incomplete.
Updated: 23 August 2021; Ref: scu.163047
