Normal Practice is in the Contract

Posted: 4th March 2011

stationDifferent industries and markets have different customs. On that point the Court of Appeal has recently decoded that when interpreting a contract, account should be taken of ‘market practice’ in deciding whether a term should or should not be implied into a contract.
Such determinations are necessary when a contract has to be examined so that the true intention of the parties to the contract can be ascertained. Whether or not the Court will take the step of implying that market practice should be taken account of in interpretation depends on the ‘factual matrix’ of the case.
In his judgment, Lord Justice Aikens was implied that this approach may be taken for oral as well as written contracts.
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