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On appeal from: [2010] EWCA Civ 582

The proper role and application of considerations of business common sense when interpreting commercial contracts. Held: where the parties have used unambiguous language, the court must apply it. However if there are two possible constructions, it is generally appropriate to adopt the interpretation that is most consistent with business common sense and to reject the other. It is not necessary to conclude that a particular construction would produce an absurd or irrational result before proceeding to have regard to the commercial purpose of the agreement.

For judgment, please download: [2011] UKSC 50
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