Monday, 31 October 2011

UK: the interpretation of commercial contracts - Rainy Sky judgment due this week

The Supreme Court has announced that it will hand down its judgment in Rainy Sky S. A. v Kookmin Bank this Wednesday: see here. According to the Supreme Court's summary of the case, it concerns the "proper role and application of considerations of business common sense when interpreting commercial contracts. In particular, whether such considerations form part of a single interpretative process or whether they are only to be applied as a second stage of analysis, after a textual analysis of the contract, and then only to exclude an absurd or irrational construction or to facilitate a choice between otherwise equally balanced textual constructions".

Update (2 November 2011): see this blog post for the judgment.

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