In Investors Compensation Scheme Ltd v. West Bromwich Building Society (1998), Lord Hoffmann defined interpretation as the 'ascertainment of the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract'. In other words, agreements cannot be interpreted in isolation from the factual matrix in which they were set. Which of the following is part of the factual matrix?
A) The pre-contractual negotiations of the parties.
B) The parties' declarations of subjective intent.
C) The parties conduct subsequent to contract.
D) None of the options given is correct.

Question

Quizplus · Accepted Answer

The Answer of In Investors Compensation Scheme Ltd v. West Bromwich Building Society (1998), Lord Hoffmann defined interpretation as the 'ascertainment of the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract'. In other words, agreements cannot be interpreted in isolation from the factual matrix in which they were set. Which of the following is part of the factual matrix?
A) The pre-contractual negotiations of the parties.
B) The parties' declarations of subjective intent.
C) The parties conduct subsequent to contract.
D) None of the options given is correct.

In Investors Compensation Scheme Ltd V