A Construction Conundrum?

Abstract

This article analyses the recent decision of the United Kingdom Supreme Court in Multi-Link Leisure Developments Ltd v North Larnakshire Council and argues that the reasons given by their Lordships for dismissing the appeal are unconvincing. It is suggested that the decision arguably crossed the fine line between giving a commonsense or “commercial” interpretation to the bargain actually made and granting relief from an unfavourable bargain. More importantly perhaps, it is argued that the case illustrates that, despite the wide acceptance of Lord Hoffmann’s restatement of the fundamental principles of interpretation in Investors Compensation Scheme Ltd v West Bromwich Building Society, his Lordship’s “old intellectual baggage of legal interpretation” is still carried around by some judges and, as a result, discrepancies continue in the basic approach of the courts to issues of contract interpretation.

Keywords: Contract, Interpretation

JEL Classification: K10, K12