Title

IV.5.2 - Context-oriented interpretation

Content

No. IV.5.2 - Context-oriented interpretation

Contractual terms and expressions shall be interpreted taking into account the whole context, including the contract or statement in which they appear.

Commentary

1 The Principle takes account of the fact that contractual stipulations form an integral part of the contract in which they appear. Very often, there are connections between the various contract clauses in a contract. The contractual agreement may consist of a number of contract documents, which, in their entirety, constitute the contract and which may or may not include indications as to the hierarchy between the various documents which must be observed when interpreting the clauses which make the contract.

2 For all these reasons, any interpretation of a contract clause must not look at that clause in isolation but must take into account the contract as a whole. This includes the preamble of the contract which may contain important guidelines for the interpretation and understanding of the contract as a whole. A letter of intent concluded prior to the contract itself may also provide helpful guidance for the interpretation of the clauses contained in the contract.

References

Arbitral Awards

Ad-Hoc-Award, Kuwait v. The American Independent Oil Company (AMINOIL), 21 ILM 976CRCICA Award no. 64/1995, in: Mohie Eldin I. Alam Eldin, Arbitral Awards of the Cairo Regional Centre of International Commercial Arbitration, The Hague 2000, 175ICC Award No. 12290, Collection of ICC Arbitral Awards 2008-2011, at Page 831 et seq.ICC Award No. 13278, YCA 2008, 118 et seq.ICC Award No. 5961, Clunet 1997, at 1051 et seq.ICC Award No. 8908, ICC Bull. 10/No. 2 (1999), at 83 et seq.ICSID Award of December 29, 2004, Ceskoslovenska Obchodni Banka A.S. v. The Slovak Republic, Case No. ARB/97/4, http://ita.law.uvic.ca/documents/Cesk-Slovakia-AwardDec2004.pdfSumitomo Heavy Industries Ltd. v. Oil Gas Commission of India (1995)

Court Decisions

Clark Street Associates LLC v Norsk Titanium AS [2020] EWHC 1038 (Comm)Davis Contractos Ltd. v. Fareham Urban District Council, [1956] A.C. 696Energy Transport Ltd. v. M.V. San Sebastian, 348 F Suppl. 2d 186HSBC Trustee (Singapore) Ltd v Lucky Realty Co Pte Ltd, [2015] SGHC 93Interpretation of Peace Treaties, ICJ Rep. 1950, at 221 et seq.Leiman v Noble Resources Ltd, [2020] SGCA 52Paul Revere Variable Annuity Insurance Company et al v. Maureen A. Kirschhofer et al., 226 F.3d 15 (1st Cir. 2000)Sembcorp Marine Ltd v PPL Holdings Pte Ltd and another, [2013] SGCA 43Sumitomo Heavy Industries Ltd v. Oil & Natural Gas Commission of India, (India) C.A. No. 3185 of 2002Wood v. Capita Insurance Service Limited [2017] UKSC 24Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd [2008] 3 SLR 1029; [2008] SGCA 27

Doctrine

Charles T. Kotuby Jr. / Luke A. Sobota, GENERAL PRINCIPLES OF LAW AND INTERNATIONAL DUE PROCESS - Principles and Norms Applicable in Transnational Disputes, New York NY USA 2017Craig, W. Laurence/ Park, William W./ Paulsson, Jan, International Chamber of Commerce Arbitration, 3rd ed., Dobbs Ferry 2000Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006Fouchard Gaillard Goldman on International Commercial Arbitration (edited by Emmanuel Gaillard and John Savage) The Hague 1999Hascher, Dominique, note to ICC Award No. 5961, Clunet 1997, at 1054 et seq.Hutchison, Dale (Ed.) / Pretorius, Chris (Ed.),  The Law of Contract in South Africa, Oxford University Press Southern Africa, 2018Kahn, Philippe, L’interpretation des contrats internationaux, 108 Clunet 1981, at 5 et seq.Kersley, R.H., M.A., LL.M./ Broom, Herbert, LL.D., A Selection of Legal Maxims, 10th ed. London, 1939MacQueen, Hector L./Thomson, Joe, Contract Law in Scotland, Fourth Edition 2016Marrella, Fabrizio, La nuova lex mercatoria, Principi Unidroit ed usi di contratti des comercio internazionale, CEDAM, Tratto di dritto commerciale e di dritto publico dell‘economia, Volume 30, Padova 2003McMeel, Gerard, The Contruction of Contracts - Interpretation, Implication, and Rechtification, 2nd Ed., 2011Park, William W., Gaps and changed circumstances in energy contracts: the devil in the detail, Journal of World Energy Law & Business, Volume 8 (2015), Issue 2, at 89 et seq.Triebel, Volker, Pitfalls of Englisch as a Contract Language, in: Frances Olsen et al (eds), Translation Issues in Language and Law (2009), at 147 et seq.Wühler, Norbert, Application of General Principles of Law, in van den Berg (ed.), Planning efficient Arbitration Proceedings - The Law Applicable in International Arbitration, p. 553 et seq.

International Legislation

Fontaine, Marcel, OHADA Uniform Act On Contract Law Preliminary DraftOrganization for the Harmonization of Business Law in Africa (OHADA), Uniform act relating to general commercial lawVienna Convention on the Law of Treaties of 1969

Model Laws

Principles of Latin American Contract Law (PLACL)The Draft Civil Code for Israel in: Siehr, Kurt/Zimmermann, Reinhard (ed.) The Draft Civil Code for Israel in comparative perspective, 2008

National Legislation

Civil Code of the People's Republic of China (2020)Contract Law of the People's Republic of ChinaContract Law of the People's Republic of ChinaEthiopian Civil CodeFrench Civil Code 2016GIW DDRIndonesian Civil Code (excerpts)Louisiana Civil Code 2015Philippines Republic Act 386 (Civil Code)

Principles / Restatements

OHADAC principles on international commercial contractsUNIDROIT Principles of International Commercial Contracts 2016