Scope of Work and Interpretation of Contracts

Notes


1 See ch 3.


2 We consider the correct application of such clauses in ch 2 at paras 2.8594. If the contract does not contain such a clause, a similar approach would apply as a matter of the principles of contract interpretation, to the extent that the inconsistency cannot be resolved by reading the clauses together or determining the true intention of the parties. See Forbes v Git [1922] 1 AC 256; Tri-MG Intra Asia Airlines v Norse Air Charter Ltd [2009] SGHC 13, [2009] 1 Lloyd’s Rep 258.


3 H G Beale, Chitty on Contracts (32nd edn, Sweet & Maxwell 2015) in particular chs 13 and 14.


4 Kim Lewison, The Interpretation of Contracts (5th edn, Sweet & Maxwell 2011).


5 Robertson v French (1803) 4 East 130, 102 ER 779; Shore v Wilson (1842) 9 Cl & Fin 355, 8 ER 450; BP Exploration Operating Co Ltd v Kvaerner Oilfield Products Ltd [2004] EWHC 999 (Comm), [2005] 1 Lloyd’s Rep 307; Thames Valley Power Ltd v Total Gas & Power Ltd [2005] EWHC 2208 (Comm), [2006] 1 Lloyd’s Rep 441; Pink Floyd Music Limited v EMI Records Ltd [2010] EWCA Civ 1429, [2011] 1 WLR 770.


6 Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976] 1 WLR 989, [1976] 2 Lloyd’s Rep 621.


7 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 All ER 98, [1998] 1 WLR 896.


8 ibid 913.


9 MT Hojgaard A/S v E.ON Climate and Renewables UK Robin Rigg East Ltd and Anor [2014] EWHC 2369 (TCC).


10 See Shore v Wilson (n 5).


11 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749, [1997] 2 WLR 945.


12 Smith v Thompson (1849) 8 CB 44, 137 ER 424; MRI Trading AG v Erdenet Mining Corp LLC [2012] EWHC 1988 (Comm), [2012] 2 Lloyd’s Rep 465.


13 Shore v Wilson (n 5).


14 Laird v Briggs (1881) 19 Ch D 22.


15 Clayton v Lord Nugent (1844) 13 M&W 200, 153 ER 83 (Will).


16 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749, [1997] 2 WLR 945; Investors Compensation Scheme Ltd v West Bromwich Building Society (n 7).


17 Arnold v Briton [2015] UKSC 36.


18 [2011] UKSC 50, [2012] 1 Lloyd’s Rep 34.


19 Arnold v Britton (n 17).


20 The principle of ‘business common sense’ was also considered and applied in The Trustees of the Marc Gilbard 2009 Settlement Trust v OD Developments and Projects Ltd [2015] EWHC 70 (TCC), [2015] BLR 213.


21 Grey v Pearson (1857) 6 HL Cas 61, 10 ER 1216; BP Exploration Operating Co Ltd v Dolphin Drilling Ltd [2009] EWHC 3119 (Comm), [2010] 2 Lloyd’s Rep 192; Ace Paper Limited v Fry and Ors [2015] EWHC 1647 (Ch).


22 Mitsui Construction Co Ltd v Attorney General of Hong Kong (1986) 33 BLR 1, 10 Con LR 1.


23 See Chitty on Contracts (n 3) ch 3.


24 Agip SpA and Industria Italiana Petroli SpA v Navigazione Alta Italia SpA (The Nai Genova and the Nai Superba) [1984] 1 Lloyd’s Rep 353.


25 The requirements for rectification are set out by Peter Gibson LJ in Swainland Builders Ltd v Freehold Properties Ltd [2002] EWCA Civ 560, [2002] 2 EGLR 71 at 74, para 33. See also the discussion in Chitty on Contracts (n 3) paras 3–062 to 3–068.


26 Glynn v Margetson [1893] AC 351; North Eastern Railway Company v Hastings (Lord) [1900] AC 260 (Lord Davey).


27 Duke of Bolton v Williams (1793) 2 Ves Jr 138, 30 ER 561; Stott v Shaw & Lee Ltd [1928] 2 KB 26.


28 Robertson v French (n 5) 136; Homburg Houtimport BV v Agrosin Private Ltd and Ors (The Starsin) [2003] UKHL 12, [2004] 1 AC 715 at para 11; Camerata Property Inc v Credit Suisse Securities (Europe) Ltd [2011] EWHC 479 (Comm), [2011] 2 BCLC 54; Pagnan SpA v Tradax Ocean Transportation SA [1987] 3 All ER 565, [1987] 2 Lloyd’s Rep 342.


29 Glynn v Margetson & Co (n 26); Gesellschaft Burgerlichen Rechts v Stockholms Rederi AB Svea (The Brabant) [1967] 1 QB 588, [1965] 2 Lloyd’s Rep 546.


30 Smith v Wilson (1832) 3 B & Ad 728.


31 Compania Sud Americana de Vapores SA v Hin-Pro International Logistics Ltd [2015] EWCA Civ 401 at para 58.


32 The Moorcock [1886–90] All ER Rep 530, (1889) 14 PD 64 at 68 (Bowen LJ). Chitty on Contracts (n 3) para 14–009 sets out numerous examples of terms being implied for this reason.


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