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construction and interpretationconditions and warrantiestermination
L Schuler AG v Wickman Machine Tool Sales Ltd
[1974] AC 235 (also reported [1973] UKHL 2)
Key Principle
The use of the word 'condition' in a contract is not conclusive that the term is a condition the breach of which entitles the innocent party to terminate; the term must be construed in the context of the whole agreement, and an interpretation producing a very unreasonable result is strong evidence the parties did not so intend.
Area of Law
Contract and Commercial
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