Lloyd's Maritime and Commercial Law Quarterly
PROBLEMS OF CONTRACTUAL INTERPRETATION: ENGLISH AND FRENCH LAW COMPARED
Solène Rowan *
This article undertakes a comparative analysis of some problematic aspects of contractual interpretation in England and France. It considers the aspects of interpretation that have been contentious in English law, how French courts deal with them and the extent to which they have been similarly contentious in France. It then looks at the aspects of interpretation that have given rise to difficulties in French law and conducts a comparison with English law. The article seeks to show that, whilst English and French law share many similarities, quite different aspects of the law of interpretation have attracted the attention of the courts and commentators in the two jurisdictions. It explains these differences and the contrasting policy choices made in each system. Drawing comparison with France is particularly topical, because French contract law has recently been the subject of sweeping reforms.
I. INTRODUCTION
“The staple diet of the Commercial Court can be summed up in one word—‘construction’.”1 As this statement by Lord Goff of Chieveley makes clear, contractual interpretation, which requires the court to ascertain the meaning of the contract, is at the core of commercial disputes practice. It has dominated judicial debate in commercial law over the last 30 years with a series of prominent House of Lords and Supreme Court decisions,2 several containing powerful dissents. These decisions have both enthused commentators and ignited controversy, generating an abundance of literature from academics, practitioners and judges writing extrajudicially.3
* Associate Professor and Futures Scheme Award holder, the Australian National University. My thanks go to Gregg Rowan, and to the editor and the anonymous referee of LMCLQ for their comments on an earlier draft.
1. Sir Robert Goff, “Commercial Contracts and the Commercial Court” [1984] 1 LMCLQ 382, 385.
2. The most significant modern decisions on contract interpretation are Investors Compensation Scheme Ltd v West Bromwich Building Soc [1998] 1 WLR 896 (“ICS v West Bromwich”); Chartbrook Ltd v Persimmon Homes [2009] UKHL 38; [2009] 1 AC 1101; Rainy Sky SA v Kookmin Bank [2011] UKSC 50; [2012] 1 Lloyd’s Rep 34; [2011] 1 WLR 2900; Arnold v Britton [2015] UKSC 36; [2015] AC 1619; Wood v Capita [2017] UKSC 24; [2017] AC 1173.
3. Eg Goff [1984] 1 LMCLQ 382; Lord Hoffmann, “The Intolerable Wrestle with Words and Meanings” (1997) 114 SALJ 656; Lord Nicholls of Birkenhead, “My Kingdom for a Horse: The Meaning of Words” (2005) 101 LQR 577; Lord Bingham of Cornhill, “A New thing Under the Sun? The Interpretation of Contracts and the ICS Decision” (2008) 12 Edin LR 374; Lord Sumption, “A Question of Taste: The Supreme court and the Interpretation of Contracts” (2017) 17(2) OUCLJ 301.
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