Representation – Term or Collateral Contract?
In Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; 55 ALR 417 the majority agreed with the conclusion of the trial judge (and that of the Court of Appeal) that statements made by the distributors were promissory. Gibbs CJ disagreed but did note at 61-62: “A representation made in the course […]
Read MoreWaiver
Commonwealth v Verwayen (1990) 170 CLR 394 at 406. At 406-407 Mason CJ said: “According to its strict legal connotation, waiver is an intentional act done with knowledge whereby a person abandons a right by acting in a manner inconsistent with that right: Craine v Colonial Mutual Fire Insurance Co Ltd [(1920) 28 CLR 305, […]
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Principles surrounding the construction of commercial contracts
The principles surrounding the construction of commercial contracts are well established. In Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 at [35] the plurality (French CJ, Hayne, Crennan and Kiefel JJ) stated, “The meaning of the terms of a commercial contract is to be determined by what a reasonable businessperson would have understood […]
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Construing a policy of insurance
As the policy is a commercial contract, the Court should, in construing it, “ask what a reasonable businessperson would have understood [the relevant] terms to mean”: Electricity Generation Corporation t/as Verve Energy v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 (Electricity Generation) at [35]. The task is an objective one; it involves […]
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