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United Kingdom
correcting mistakespre contractual negotiationsrectification
Lord Hoffmann in Chartbrook Ltd v Persimmon Homes Ltd
[2009] AC 1101
Key Principle
In construing a contract the court interprets the words in their documentary, factual and commercial context; where it is clear both that something has gone wrong with the language and what a reasonable person would have understood the parties to have meant, the court may correct the mistake as a matter of construction, and there is no limit to the verbal rearrangement permitted to give the clause a commercially sensible meaning.
Area of Law
General
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