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15 December 2011
Issue: 7494 / Categories: Case law , Law digest , In Court
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Contract

Hyundai Merchant Marine Company Ltd v Trafigura Beheer BV [2011] EWHC 3108 (Comm), [2011] All ER (D) 55 (Dec)

It was established law that the ultimate aim of interpreting a provision in a contract, especially a commercial contract, was to determine what the parties had meant by the language used: that involved ascertaining what a reasonable person would have understood the parties to have meant. The relevant reasonable person was one who had all the background knowledge which would reasonably have been available to the parties in the situation in which they had been at the time of the contract. Where the parties had used unambiguous language, the court had to apply it. However, if it was capable of more than one construction, one chose that which seemed most likely to give effect to the commercial purpose of the agreement.

It was necessary when construing a commercial document to strive to attribute to it a meaning which accorded with business common sense. It would be wrong to approach a question of construction with any predisposition to find inconsistency

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MOVERS & SHAKERS

Freeths—Heather Gibson

Freeths—Heather Gibson

Freeths strengthens national tax team with Heather Gibson appointment

Debevoise & Plimpton—Mary Lavelle

Debevoise & Plimpton—Mary Lavelle

Debevoise expands London secondaries team with addition of Mary Lavelle

Excello Law—Hestia Private Client

Excello Law—Hestia Private Client

Excello Law welcomes ex-Irwin Mitchell team to launch Hestia Private Client

NEWS
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
A client cannot use a costs assessment to investigate whether their solicitor received commission on an after-the-event (ATE) insurance premium, the Court of Appeal has held
Law firms cannot be compelled to disclose documents protected by unwaived legal professional privilege (LPP) during misconduct investigations, the High Court has clarified
Solicitors have urged regulators not to impose unnecessary cost and complexity on third-party litigation funding
International demand for UK legal services is surging, with exports at record levels, according to Law Society research
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