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Lloyd's Maritime and Commercial Law Quarterly

BOOK REVIEW - THE INTERPRETATION OF CONTRACTS (2ND EDITION)

THE INTERPRETATION OF CONTRACTS (2nd Edition). Kim Lewison, Q.C. Sweet & Maxwell, London (1997) Ixxiii and 443 pp., plus 16 pp. Index. Hardback £110.
Contractual disputes invariably involve one or more questions of interpretation. Such questions might, for example, concern ambiguity in the language chosen, the question whether the language used in a particular exemption clause covers the breach that has occurred, mistakes in expression, inconsistencies and contradictions between the meaning of clauses or even a complete omission to address a particular matter, raising the possibility that the contract may be void for uncertainty. Increasingly, in long-term contracts such omissions are deliberate and designed to provide for the greatest flexibility where the contract provides for performance over a lengthy period. Taking account of practical business realities, the courts have demonstrated that they are prepared to adopt a pragmatic approach and adopt interpretations that will allow effect to be given to an executed or partly executed contract.
A knowledge of the construction devices likely to be used by the courts in interpreting particular clauses and resolving interpretation problems is obviously also important at the drafting stage. It might be thought that interpretation problems would have diminished with the increasing use of boiler-plate clauses, standard form contracts and the tendency of the courts to follow established constructions, particularly in commercial and mercantile contracts, where certainty is important. However, the tendency to “customize” standard forms has led to many unanticipated difficulties of interpretation where a slight adjustment is made to a particular clause and both parties adopt different interpretations of the words used.
It is against this background that Mr Lewison’s book is, and has been, warmly welcomed. Since the first edition in 1989, although the basic structure appears to be unaltered, the book has grown considerably to take account of the growing body of case law over the last eight years. The style is unapologetically practical and expositionary rather than academic. To his credit, Mr Lewison has presented a series of clear propositions together with a range of case law examples, conveniently listed, to illustrate each proposition. The great advantage of this book is that it provides a single volume source of reference for such case examples.
Given that this is essentially a text tackling general principles of contract interpretation rather than, for example, a text professing to examine in depth the interpretation of a range of different types of contract, Mr Lewison cannot really be criticized for his choice of examples. There is a preponderance of examples from contracts concerning interests in land, together with a fair range of examples likely to be relevant in the context of commercial contracts. On the other hand, those requiring an examination of interpretation problems in employment contracts would be better directed to a specialist employment law text, especially in the context of the discussion of implied terms. From the commercial and maritime perspective, in addition to the obvious chapters examining the basic rules of interpretation and canons of construction, there are useful chapters on the interpretation of exemption and indemnity clauses, a chapter examining certificates, consents and similar clauses and a chapter dealing with time stipulations.
However, there are two obvious problems resulting from the approach adopted. The first difficulty I have with a text such as this is that on occasion it needs to draw a much clearer distinction between

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