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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

mfg Solicitors—Hayley Pearce & Lauren Williams

mfg Solicitors—Hayley Pearce & Lauren Williams

Law firm mfg Solicitors announces promotions at Ludlow office

Womble Bond Dickinson—Richard Sharpe

Womble Bond Dickinson—Richard Sharpe

Womble Bond Dickinson appoints partner in Leeds residential team

Brabners—six promotions

Brabners—six promotions

Brabners adds six to partnership in record year for partner promotions

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Law firms should use the transition period before the Financial Conduct Authority (FCA) assumes anti-money laundering (AML) supervision to strengthen governance and compliance, experts have warned
Cross-border disputes increasingly demand creative approaches to gathering evidence, with litigators needing to look beyond traditional letters of request
A Court of Appeal ruling has clarified the distinction between contracts of 'indefinite' and 'perpetual' duration, with potentially significant implications for commercial drafting
The Court of Appeal was entitled to uphold the government's decision to proscribe Palestine Action as a terrorist organisation, according to an analysis of the ruling
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