Subject: Contracts Other related subjects: Banking and finance
Keywords: Bonds; Contract terms; Guarantees; Instalments; Interpretation; Shipbuilding
Summary: The words “all such sums due to you under the contract” in a bond were to be construed as limiting the extent of the guarantee provided by it. Such a construction produced a result that was neither absurd nor irrational and it was not open to the court to construe the terms of the bond more widely simply because no credible commercial reason had been advanced for its having a limited scope.
Members of Chambers: Andrew Baker QC and Socrates Papadopoulohe for the respondents (instructed by Ince & Co).