Does the term "surrounding circumstances" apply to a commercial contract?
Alberta, Canada
The following excerpt is from First City Trust Company v. Triple Five Corporation Ltd., 1989 ABCA 28 (CanLII):
In Reardon Smith v. Yngvar Hansen-Tangen [1976] 3 All E.R. 570, Lord Wilberforce, in noting that the term "surrounding circumstances" was imprecise said at page 574: "In a commercial contract it is certainly right that the court should know the commercial purpose of the contract and this in turn presupposes knowledge of the genesis of the transaction, the background, the context, the market in which the parties are operating."
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
In what circumstances will a party be bound by the elements of a contract where the contract is not enforceable when the contract was signed? (Alberta, Canada)
Is a contract enforceable for breach of contract when the contract is not enforceable? (Alberta, Canada)
Can an assignee or assignee of a vendor under a conditional sales contract, and if so, what are the consequences if the vendor decides to cancel the contract? (Alberta, Canada)
What is the legal principle which applies when there is a mistake of fact on a contract? (Alberta, Canada)
What is the meaning of a contract law case in contract law? (Alberta, Canada)
Can a party who dictates different terms for a contract already formed be considered to be refusing to perform the contract as written? (Alberta, Canada)
How have the courts interpreted the meaning of the word "contract" in the context of an enforceable contract? (Alberta, Canada)
What is the test for a contract where a party contracts to cut for a quantity of wood and haul and deliver the wood at a time and to a place mentioned? (Alberta, Canada)
Does an agent have to be personally liable on a contract where the principal of the contract is not personally liable? (Alberta, Canada)
How has contract law been interpreted in the context of tenders in construction contracts? (Alberta, Canada)
