Investors Compensation Scheme Ltd v West Bromwich Building Society

E655792

Investors Compensation Scheme Ltd v West Bromwich Building Society is a landmark 1998 House of Lords decision in English contract law, best known for Lord Hoffmann’s influential restatement of the principles of contractual interpretation.

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Statements (48)

Predicate Object
instanceOf English contract law case
House of Lords decision
United Kingdom Supreme Court precedent
appliesTo interpretation of commercial contracts
interpretation of consumer contracts
areaOfLaw contract law
interpretation of contracts
citation [1998] 1 All ER 98
[1998] 1 WLR 896
claimant Investors Compensation Scheme Ltd NERFINISHED
country United Kingdom
court House of Lords NERFINISHED
decidedIn United Kingdom House of Lords NERFINISHED
decisionDateApprox June 1997
decisionYear 1998
defendant West Bromwich Building Society NERFINISHED
famousFor Lord Hoffmann’s restatement of the principles of contractual interpretation
five principles of contractual interpretation
holding background or matrix of fact is admissible to aid interpretation
contractual documents are interpreted according to what a reasonable person with all background knowledge would have understood
courts aim to ascertain the objective intentions of the parties
meaning of a document is not the same as the literal meaning of its words
previous negotiations are generally inadmissible for interpretation
involvedEntity Investors Compensation Scheme Ltd NERFINISHED
West Bromwich Building Society NERFINISHED
judge Lord Clyde NERFINISHED
Lord Goff of Chieveley NERFINISHED
Lord Hoffmann NERFINISHED
Lord Lloyd of Berwick NERFINISHED
Lord Steyn NERFINISHED
jurisdiction England and Wales
leadingJudge Lord Hoffmann NERFINISHED
legalIssue construction of written terms
objective approach to contractual meaning
principles of contractual interpretation
role of prior negotiations in interpretation
use of background or matrix of fact
legalPrinciple contextual approach to interpretation
exclusion of subjective intentions
objective theory of contract
reporter All England Law Reports NERFINISHED
Weekly Law Reports NERFINISHED
status leading authority on contractual interpretation in English law
subsequentInfluence Arnold v Britton NERFINISHED
Chartbrook Ltd v Persimmon Homes Ltd NERFINISHED
Prenn v Simmonds NERFINISHED
Rainy Sky SA v Kookmin Bank NERFINISHED
Wood v Capita Insurance Services Ltd NERFINISHED

Referenced by (1)

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Lord Hoffmann notableWork Investors Compensation Scheme Ltd v West Bromwich Building Society