Contractual interpretation

This overview is a guide to the Banking & Finance content within the Contractual interpretation subtopic, with links to the appropriate materials.

Many contractual disputes centre on what the contract means. There is no simple set of rules to follow in respect of how contracts may be construed and interpreted. Much will depend on the individual facts of the case. However, over the years a considerable body of case law (and some statute) has evolved that has set some parameters and guidelines for the approach to be taken. These include those set out in the sections below.

The general principles and rules of contract interpretation

In 1998 in Investors Compensation Scheme v West Bromwich Building Society (ICS) Lord Hoffmann laid down a set of five principles that have now become the leading statement on the interpretation of contracts. In essence:

•
it is an objective test as to what a reasonable person, having all the background knowledge reasonably available, would have understood the contract to mean at the time of contracting
•
account can be taken of background knowledge and matrix of fact

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Banking & Finance News

Sustainable finance and ESG weekly round–up—21 November 2024

This week's edition of the Sustainable finance and ESG weekly round-up from the Finance Group includes: (1) ICC issues guidance on successful Carbon Pricing, (2) COP29 round up, and (3) ESAs issue ‘Fit-For-55’ climate scenario analysis results.

Banking and Finance weekly highlights—21 November 2024

This week's edition of Banking and Finance weekly highlights includes: (1) the decision in Kireeva v Bedzhamov where the Supreme Court has unanimously dismissed Ms Kireeva’s (Russian bankruptcy trustee’s) appeal to overturn the Court of Appeal’s’ decision; (2) HMLR announces changes to addresses for business customers; and (3) HMT consults on the case for a UK Green Taxonomy.

IOSCO issues consultation report on pre-hedging practices and regulatory recommendations

The International Organization of Securities Commissions (IOSCO) has published a consultation report on pre-hedging practices, seeking feedback on its proposed definition and recommendations, to guide regulators in determining acceptable practices and managing associated conduct risks. Additionally, IOSCO requests feedback on whether the recommendations need to be adapted to specific circumstances, such as potential differences in pre-hedging practices and internal non-electronic transactions, as well as in the context of electronic trading, including competitive requests for quotes (RFQs). Responses are sought by 21 February 2025.

BCBS reaffirms expectation of implementing Basel III and advances banking supervision initiatives

The Basel Committee on Banking Supervision (BCBS) met in Basel on 19–20 November 2024 and unanimously reaffirmed its expectation of implementing all aspects of the Basel III framework in full, consistently and expeditiously. Such a commitment was also recently reiterated by G20 Finance Ministers and Central Bank Governors.

View Banking & Finance by content type :

News