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UK Law Reference
所有案例
Maritime Law
House of Lords
1985

Antaios Compania Naviera SA v Salen Rederierna AB (The Antaios)

[1985] AC 191

判决理由

Where, in the process of construing a commercial contract, there are two competing interpretations and one produces a commercially absurd result while the other produces a result consistent with business common sense, the court should prefer the latter. A detailed semantic and syntactical analysis of the words of a contract which leads to a commercially absurd conclusion must give way to business common sense. The case also confirmed the scope of arbitration appeals on questions of law under the Arbitration Act 1979: the House of Lords has jurisdiction to hear such appeals from arbitrators only on questions of law, not questions of fact.

事实

The Antaios was chartered under the New York Produce Exchange form of time charterparty. The charterparty contained a withdrawal clause and an anti-technicality clause. The charterers fell into arrears of hire. The owners sent a notice under the anti-technicality clause, but the charterers argued that the owners were themselves in breach of various obligations under the charterparty. The owners then withdrew the vessel. The charterers claimed wrongful withdrawal. The arbitrators held in favour of the owners, but the question of law arose as to whether the owners were entitled to withdraw the vessel not only for non-payment of hire but also for any other breach of the charterparty, even if trivial.

判决摘要

The House of Lords, in an appeal on a point of law from the arbitrators, held that the withdrawal clause could not properly be interpreted as entitling the owners to withdraw for any breach of the charterparty, no matter how trivial. Lord Diplock gave the principal speech. He held that the withdrawal clause, construed in the context of the charterparty as a whole and in the commercial setting, was intended to apply only to failure to pay hire and not to any other breach. To hold otherwise would mean that the owners could withdraw the vessel for some purely technical and minor breach by the charterers — a result that was commercially absurd, since it would make the charterparty a trap for charterers and would be inconsistent with how commercial parties of this kind would understand their agreement. Lord Diplock articulated what has become a famous statement of the principle of business common sense in contractual interpretation: semantic analysis must yield to commercial sense. The case is the precursor to Lord Hoffmann's more systematic statement of contextual interpretation in ICS v West Bromwich Building Society [1998].

关键引述

"If detailed semantic and syntactical analysis of words in a commercial contract is going to lead to a conclusion that flouts business commonsense, it must be made to yield to business commonsense."

Lord Diplock at 201

"I take this opportunity of restating that if there is any conflict between the result of a detailed semantic analysis of words and business common sense in a commercial contract, it must be for business common sense that prevails."

Lord Diplock at 201

"An anti-technicality clause entitling the owner to withdraw for any breach of any obligation by the charterer would be construed as commercially absurd in a standard form charterparty."

Lord Diplock at 200

后续处理

Good law

Cited consistently as one of the foundational statements of the 'business common sense' principle in contractual interpretation. Applied in Rainy Sky SA v Kookmin Bank [2011] UKSC 50 (per Lord Clarke), which confirmed that business common sense is the touchstone when construing ambiguous commercial contracts.

Applied

Applied in Arnold v Britton [2015] UKSC 36 (per Lord Neuberger), where the Supreme Court confirmed that while business common sense is important, the court should not rewrite a contract merely because the outcome is commercially unfortunate: the clearer the language, the more difficult to depart from it.

Developed

Developed in Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 (HL), where Lord Hoffmann systematically stated five principles of contractual interpretation, of which the Antaios principle of business common sense was the fifth.

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