Interpretation of terms and exemption clauses

Question 1

Codelfa Construction v State railway authority

Answer 1

Court can only intervene when the language is ambiguous or susceptible to more than one meaning

Question 2

Mount Bruce Mining

Answer 2

Objective test in reference to text, context, and purpose taken to construction: what would normal business person take the words to mean?

Sometimes extrinsic evidence is needed to find commercial purpose of contract. Consider genesis of contract, the background, the market, and the context

Question 3

Electricity generation corporation v woodside

Answer 3

Reaffirms Mount Bruce

“reasonable endevours” are not unconditional, parties may still act is self interest in matters related to contract

Question 4

Sydney city council v west

Answer 4

Four corner rule: when actions are taken outside the scope of the contract, you cannot rely upon exception clauses made to protect you from authorized actions within the contract

Question 5

TNT v May & Baker

Answer 5

Deviation rule: when there has been an unauthorized deviation from the contract, exemption clauses cannot be relied upon

Consider whether radical breach