Interpreting Commercial Property Contracts

In a recent House of Lords decision (Chartbrook v Persimmon), it was held that where there is a misunderstanding between parties in the interpretation of a contract clause, then one should look at “what a reasonable person would have understood the parties to have meant.”

It therefore flows from this decision that where the parties are in disagreement, they should look at the spirit behind the clause.

To avoid future legal expenses, it is important that ambiguous language is not used when drafting contracts. The agreement should accurately reflect the commercial purpose between the parties.

share this Article

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Recent Articles