Finals - Contractual Interpretation & Defamation Flashcards
What is contractual interpretation?
It’s the process courts use to determine the meaning of contractual terms and the intentions of the parties.
What is the leading case on modern contractual interpretation?
Investors Compensation Scheme Ltd v West Bromwich Building Society [1998]
What are Lord Hoffmann’s principles from ICS?
- Interpretation is what a reasonable person would understand
- The context includes all background knowledge
- Previous negotiations are excluded
- Words should be given their ordinary meaning, unless the context suggests otherwise
- The meaning should make commercial sense
Which case refined Lord Hoffmann’s approach and re-emphasised the natural meaning of the words?
Arnold v Britton [2015] — stressed the importance of the actual wording, even if it leads to a bad bargain.
What does Rainy Sky v Kookmin Bank [2011] add?
Where a term is ambiguous, the interpretation that is consistent with business common sense should be preferred.
Can prior negotiations be used as context?
No – generally excluded (Chartbrook Ltd v Persimmon Homes [2009]), to avoid uncertainty.
What’s the difference between interpretation and rectification?
- Interpretation looks at what the words mean
- Rectification is about correcting a written document that doesn’t reflect the actual agreement.
What are the three key elements of defamation?
- A defamatory statement
- About the claimant
- Published to a third party
What makes a statement ‘defamatory’?
It lowers the claimant in the estimation of right-thinking members of society (Sim v Stretch [1936]).
What case clarified the ‘serious harm’ requirement?
Lachaux v Independent Print Ltd [2019] – actual serious harm must be proved under the Defamation Act 2013.
What’s the difference between libel and slander?
- Libel = permanent form (e.g. written, TV, online)
- Slander = spoken, temporary form.
What are the main defences to defamation?
- Truth
- Honest opinion
- Publication on a matter of public interest (Defamation Act 2013, s2–s4)
- Privilege (absolute or qualified)
What is the ‘Reynolds defence’?
A common law defence for responsible journalism in the public interest – replaced by s4 of the 2013 Act.
Can a company sue for defamation?
Yes – but must show serious financial loss (Defamation Act 2013, s1(2)).
What is the section number for ‘truth’ under the 2013 Act?
s2
‘Truth’ is a solid defence in defamation cases.
What is the section number for ‘honest opinion’ under the 2013 Act?
s3
‘Honest opinion’ provides a defence against defamation claims.
What is the section number for ‘public interest’ under the 2013 Act?
s4
‘Public interest’ is another solid defence under the Act.
What are the solid defences under s2–s4 of the 2013 Act?
- Truth
- Honest opinion
- Public interest
These sections provide legal protections in defamation cases.
What was the ruling in Monson v Tussauds [1894] regarding defamation?
Defamation could occur even without a direct statement if the implication or inference was defamatory.
What specific act was considered defamatory in Monson v Tussauds?
A wax statue of the claimant was displayed as a criminal.
True or False: In Monson v Tussauds, a direct statement was necessary for a defamation claim.
False
Fill in the blank: In Monson v Tussauds, the implication or inference of the displayed statue was considered _______.
defamatory
What is a condition in a contract?
A condition is a fundamental term of the contract. If it’s breached, the contract can be terminated, and damages can be claimed.
What happens if a condition is breached?
The contract can be terminated, and damages can be claimed.
