Contracts Law in UK Law

Leading Cases
  • Bell v Lever Bros Ltd
    • House of Lords
    • 15 Dic 1931

    There are certain contracts expressed by the law to be contracts of the utmost good faith where material facts must be disclosed; if not the contract is voidable. Apart from special fiduciary relationships contracts for partnership and contracts of insurance are the leading instances. In such cases the duty does not arise out of contract; the duty of a person proposing an insurance arises before a contract is made; so of an intending partner.

  • Antaios Compania Naviera S.A. v Salen Rederierna A.B.
    • House of Lords
    • 26 Jul 1984

    While deprecating the extension of the use of the expression "purposive construction" from the interpretation of statutes to the interpretation of private contracts, I agree with the passage I have cited from the arbitrators' award and I take this opportunity of re-stating that if detailed semantic and syntactical analysis of words in a commercial contract is going to lead to a conclusion that flouts business commonsense, it must be made to yield to business commonsense.

  • Investors Compensation Scheme Ltd v West Bromwich Building Society
    • House of Lords
    • 19 Jun 1997,19 Jun 1997

    (1) Interpretation is the ascertainment of the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract.

  • Pioneer Shipping Ltd v B.T.P. Tioxide Ltd (Nema)
    • House of Lords
    • 16 Jul 1981

    But leave should not be given even in such a case, unless the judge considered that a strong prima facie case had been made out that the arbitrator had been wrong in his construction; and when the events to which the standard clause fell to be applied in the particular arbitration were themselves "one-off" events, stricter criteria should be applied on the same lines as those that I have suggested as appropriate to "one-off" clauses.

  • Rainy Sky SA and Others v Kookmin Bank
    • Supreme Court
    • 02 Nov 2011,02 Nov 2011

    If there are two possible constructions, the court is entitled to prefer the construction which is consistent with business common sense and to reject the other.

  • Wickman Machine Tool Sales Ltd v L. Schuler A.G.
    • House of Lords
    • 04 Abr 1973

    The fact that a particular construction leads to a very unreasonable result must be a relevant consideration. The more unreasonable the result the more unlikely it is that the parties can have intended it, and if they do intend it the more necessary it is that they shall make that intention abundantly clear.

  • Mannai Investment Company Ltd v Eagle Star Life Assurance Company Ltd
    • House of Lords
    • 21 May 1997

    In determining the meaning of the language of a commercial contract, and unilateral contractual notices, the law therefore generally favours a commercially sensible construction. The reason for this approach is that a commercial construction is more likely to give effect to the intention of the parties. Words are therefore interpreted in the way in which a reasonable commercial person would construe them.

See all results
Books & Journal Articles
See all results
Law Firm Commentaries
See all results