WK 5 - Principles of interpretation

Question 1

Aim of principles of interpretation

Answer 1

To give effect to the common intention of the parties

Question 2

Objective approach (surrounding circumstances)

Answer 2

Ascertaining the intentions of the parties: what did they mean in the circumstances?

Question 3

Which case shows the importance of objective approach?

Answer 3

Muirhead & Turnbull v Dickson - look at what was agreed over what they thought they agreed on

Question 4

Define literal approach

Answer 4

Ordinary meaning of the words used.

Question 5

Define commercially sensible construction

Answer 5

Common sense: interpretation away from absurd results

Question 6

Contra proferentem

Answer 6

When interpreting an ambiguous term (for example) an exclusion clause, courts interpret it against the proferens (the party seeking to rely on the clause)

Question 7

Which party is the proferens

Answer 7

Party seeking to rely on the clause