Claims in contract and tort in English law

For more guidance on claims, causes of action and remedies in English law beyond the Practice Notes below, see the Dispute Resolution module.

Contract interpretation

Interpreting contracts—the guiding principles

This Practice Note summarises the principles applied when interpreting the meaning of contracts, starting with Lord Hoffman’s dicta in Investors Compensation Scheme, ie the objective test (reasonable person), the relevance of background knowledge and the factual matrix, the exclusion of previous negotiations and subjective intent, and the natural and ordinary meaning of words and the specific words used.

See Practice Note: Contract interpretation—the guiding principles.

Rules of contract interpretation

This Practice Note considers key cases (Rainy Sky v Kookmin, Arnold v Britton, Wood v Capita) and specific rules including: whole of the document relevant, commercial common sense (business common sense), avoiding an unreasonable result, saving the document, consistency of terms, standard and printed terms and general and special conditions, mistakes, contra proferentem, ejusdem generis and NOM clauses.

See Practice Note: Contract interpretation—rules of contract interpretation.

Contract termination and damages

Termination for breach

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The International Law Compliance (ILC) has published the report on Compliance with Investment Treaty Arbitration Awards 2024 3rd edition. The report includes the latest data from the United Nations Conference on Trade and Development (UNCTAD) which reveals a significant increase in investor-state dispute settlement (ISDS) cases, with 1,332 known treaty-based arbitrations to date. Of the 958 concluded cases, 37.7% were decided in favour of respondent states. The report highlights Spain's position as the world leader in unpaid arbitration awards, with 24 outstanding, surpassing Venezuela and Russia. Spain also tops the list of Energy Charter Treaty disputes with 52 initiated cases.

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Arbitration weekly highlights—19 December 2024

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Timing is everything—Commercial Court takes strict approach to construing contractual time limits (Eronat v CNPC International and another)

Arbitration analysis: In Eronat v CNPC International and another, the parties had agreed to a bespoke contractual provision entitling parties to appeal an award within 30 days from the date at which the arbitral decision was ‘rendered’. This was in contrast to the default position under the LCIA Rules where there is no right to appeal. In construing the word ‘rendered’ very strictly and dismissing an appeal under section 69 of the Arbitration Act, the court found that time started running the date that the award was made, rather than the date the award was notified to the parties. The judgment serves as an important reminder for parties to act promptly when faced with contractual time limits, particularly when they relate to the challenge of arbitral awards. Written by Kirtan Prasad, of counsel, and Jessica Davies, associate, at RPC.