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Construction of Cont

QuestionAnswer
What case established the 5 modern principles governing construction? Lord Hoffman in I.C.S. v West Bromwich
Principle 1: Interpretation is the ascertainment of the meaning which the document would convey to the reasonable man with all background knowledge which would have been reasonable to the parties at the situation they were in at the time of the contract
Principle 2: The background info was described as the matrix of fact. Subject to the qualification it must have been reasonably available and the exception below, it includes anything which would have influenced the way the doc. was understood by reasonable man.
Principle 3: Previous negotiations and subjective declarations of intention are not admissible to the background.
Principle 4: Meaning of words and meaning the document would convey to a reasonable man are not the same thing. Words = dictionaries and grammar. Meaning = how those words would be understood by the parties against the relevant background. Choose and invalidate.
Principle 5: Rule that the words must be given ordinary and natural meaning means that it is not easily accepted that people have made linguistic mistakes in legal documents. If detailed semantic and syntactical analysis flouts business commonsense....
What is the Parol Evidence Rule? Parol testimony cannot be received to contradict, vary add or subtract from the terms of a written contract or the terms in which the parties have deliberately agreed to act upon.
What case stated the Parol Evidence Rule? Bank of Australasia v Palmer
Exception 1: If the written not was not intended to be the entire contract Clayton Love v B & I Transport
Exception 2: To explain a custom Wilson Strain v Pinkerton
Exception 3: To aid construction Ulster Bank v Synett
Exception 4: To explain the circumstances surrounding the agreement Revenue Commissioner v Moroney
Exception 5: To demonstrate non-existence or non-operation of the contract Pym v Campbell
Exception 6: Rectification
Exception 7: To demonstrate the existence of a collateral contract Heilbut, Symons v Buckleton
Created by: sineadgriffin
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