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United Kingdom Leading Case implied terms

Marks and Spencer plc v BNP Paribas Securities Services Trust Co

[2015] UKSC 72
JurisdictionUnited Kingdom
CourtUK Supreme Court
Year2015
StatusBinding authority

Summary

Implied terms require strict business necessity or obviousness, rejecting the broader 'reasonable and equitable' Belize Telecom formulation.

Key Principle

implied terms; strict necessity test replacing the broader Belize Telecom formulation

Area of Law

Contract — Formation and Interpretation

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MWB Business Exchange Centres Ltd v Rock Advertising Ltd [2018] UKSC 24

A 'no oral modification' clause is legally effective, so any purported oral variation of a contract containing such a clause is unenforceable.

Arnold v Britton [2015] UKSC 36

Commercial common sense cannot be used to override the clear and unambiguous language of a contractual term when construing its meaning.

Rainy Sky SA v Kookmin Bank [2011] UKSC 50

Where contractual language is ambiguous, courts should prefer the construction consistent with business common sense.

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