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Lloyd's Maritime and Commercial Law Quarterly

MISINTERPRETATION OF CONTRACTUAL RIGHTS AND REPUDIATION

Vaswani v. Italian Motors
The facts of Vaswani v. Italian Motors (Sales and Services) Ltd 1 raise, in novel form, the difficult issue of when one party’s reliance upon an honest misinterpretation of a contract should be regarded as a repudiation entitling the other party to rescind. The decision of the Privy Council seems both correct and to provide a further useful example for those charged with the task of advising in this area.

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