header-logo header-logo

Building blocks

09 March 2012 / Malcolm Dowden , Joanna Bhatia
Issue: 7504 / Categories: Features , Landlord&tenant , Property
printer mail-detail

The test governing the construction of documents is objective, note Joanna Bhatia & Malcolm Dowden

The High Court has clarified the principles governing the construction of documents, confirming that the test is entirely objective. It is the background knowledge of the “reasonable observer” which is taken into account, not that of the actual parties. He may be aware of something that the parties are not, including an established legal principle.

In Spencer v Secretary of State for Defence [2012] All ER (D) 120 (Feb), a landlord and tenant entered into a memorandum purportedly adding some land to the existing demise of an agricultural tenancy and recording a corresponding increase in rent. Between agreeing the addition and executing the memorandum, the parties had also embarked on an arbitration to determine the rent under the lease (an increase was determined four years later). Neither the landlord, nor the tenant, realised that the effect of the memorandum was a surrender and re-grant of the original lease.

The tenant accepted that the reviewed rent applied

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Pillsbury—Lord Garnier KC

Pillsbury—Lord Garnier KC

Appointment of former Solicitor General bolsters corporate investigations and white collar practice

Hall & Wilcox—Nigel Clark

Hall & Wilcox—Nigel Clark

Firm strengthens international strategy with hire of global relations consultant

Slater Heelis—Sylviane Kokouendo & Shazia Ashraf

Slater Heelis—Sylviane Kokouendo & Shazia Ashraf

Partner and associate join employment practice

NEWS
The government’s plan to introduce a Single Professional Services Supervisor could erode vital legal-sector expertise, warns Mark Evans, president of the Law Society of England and Wales, in NLJ this week
Writing in NLJ this week, Jonathan Fisher KC of Red Lion Chambers argues that the ‘failure to prevent’ model of corporate criminal responsibility—covering bribery, tax evasion, and fraud—should be embraced, not resisted
Professor Graham Zellick KC argues in NLJ this week that, despite Buckingham Palace’s statement stripping Andrew Mountbatten Windsor of his styles, titles and honours, he remains legally a duke
Writing in NLJ this week, Sophie Ashcroft and Miranda Joseph of Stevens & Bolton dissect the Privy Council’s landmark ruling in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2), which abolishes the long-standing 'shareholder rule'
In NLJ this week, Sailesh Mehta and Theo Burges of Red Lion Chambers examine the government’s first-ever 'Afghan leak' super-injunction—used to block reporting of data exposing Afghans who aided UK forces and over 100 British officials. Unlike celebrity privacy cases, this injunction centred on national security. Its use, the authors argue, signals the rise of a vast new body of national security law spanning civil, criminal, and media domains
back-to-top-scroll