Common sense prevails

Supreme Court confirms importance of “business common sense” in contractual interpretation, as Nick Vineall QC and Alex Wright, of 4 Pump Court report

On 2 November 2011, the UK’s Supreme Court handed down its eagerly-awaited judgment in Rainy Sky SA v Kookmin Bank [2011] UKSC 50. In reversing the Court of Appeal, it reiterated the importance of “business common sense” in contractual interpretation, something that had been thrown into some doubt by the more literalistic approach by the majority in the Court of Appeal.