‘Literal or Contextual? What is the Correct Approach to Contractual Interpretation?’

“Over the last twenty years or so, the approach of the English courts to contractual interpretation has moved between a strict literal approach and a more purposive approach. From recent decisions, the courts seemed to be trending back towards the literal approach (as in the Supreme Court decision of Arnold v Britton), moving away from the contextual approach (as in the earlier Supreme Court decision of Rainy Sky SA v Kookmin Bank). However, the Supreme court has recently weighed in yet again on the question of the correct approach to contractual interpretation …” (more)

[Cara Dowling and Aimee Denholm, Oxford Business Law Blog, 26 April]

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