A QUESTION OF INTERPRETATION IN WOOD

摘要

Two cases considered previously (Accountancy, Aug 2015, p54) demonstrated the incremental approach taken by the English courts when interpreting contractual provisions. The court starts by considering what the contract actually says, as opposed to what the parties actually intended. Only if the contract is ambiguous will the court go on to apply a 'business common sense' test to identify the preferred interpretation. This approach has been underlined by another recent case in which the clear-cut wording used in the agreement prevented the court from considering a business common sense interpretation.