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Building Law Monthly

Inconsistent contract terms

In Alexander (as representative of the ‘Property 118 Action Group’) v West Bromwich Mortgage Company Ltd [2016] EWCA Civ 496, the Court of Appeal held that, at least in the case where a contract contains a term which deals with the possibility that there is an inconsistency between the terms of the contract, a court should approach the interpretation of the contract without any assumptions about the likelihood or not of there being an inconsistency in the contract. In the case where there is no such clause, the court is more reluctant to find the existence of an inconsistency and will, where possible, seek to read the contract documents together in such a way as to achieve a coherent whole. In order to amount to an inconsistency, it is not enough to show that one term qualifies or modifies the other. It is necessary to go further and demonstrate that one term contradicts the other or is in conflict with it such that effect cannot fairly be given to both terms.


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