The Contra Proferentem Rule

Question 1

what is the contra proferentem ‘rule’?

Answer 1

its a principle to assist with interpreting terms in contracts, not just exclusion clauses and where there is ambiguity or uncertainty it should be interpreted against the person who introduced it and who seeks to rely on it

Question 2

Transocean Drilling UK v Providence Resources

Answer 2

facts: Transocean’s exclusion clause limited liability in their contract with Providence. When damage occurred due to Transocean’s negligence, Providence sought damages beyond the limitation.
held: Transocean’s exclusion clause was valid and effectively limited liability for negligence.
principle: Exclusion clauses in contracts can limit liability for negligence if they are valid and properly included in the contract.

Question 3

Persimmon Homes v Ove Arup and Partners

Answer 3

facts: Persimmon contracted Ove Arup for engineering services. When ground defects caused extra costs, Persimmon sought damages, contesting liability limitations. held: court upheld the limitations, dismissing Persimmon’s claim.
principle: Liability limitations in contracts are enforceable if properly included, even for unforeseen issues.

Question 4

Oliver Nobahar-Cookson v The Hut Group

Answer 4

facts: Nobahar-Cookson, a software engineer, sued his former employer for unpaid bonuses and commission.
held: court ruled in favor of Nobahar-Cookson, affirming his entitlement to the bonuses and commission as per his employment contract.
principle: employees are entitled to the bonuses and commission specified in their employment contracts.