Trans-Lex Administrative Information
Document-ID: 925000
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Where there is doubt about the meaning of a contract term, an interpretation should be preferred that makes the contract lawful or effective ("ut res magis valeat quam pereat"; "effet utile").
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[doctrine ] [arbitral awards ] [court decisions ] [national legislation ] [principles / restatements ] [model laws ] close X Berger, Klaus Peter, The Creeping Codification of the Lex Mercatoria, The Hague, London, Boston 1999 Berger, The Creeping Codification of the New Lex Mercatoriam 2nd. ed. 2010 Black, Henry Campell, Black's Law Dictionary, 6th ed., St. Paul 1990 Dasser, Felix, Internationale Schiedsgerichte und Lex Mercatoria, Zürich 1989 Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006 Fouchard, Philippe, L'Arbitrage Commercial International, Paris 1965 James, Philip, Introduction to English Law., 10th ed., London 1979 Lewison, Kim, The Interpretation of Contracts, 2nd. Ed., London 1997 Schmitthoff, Clive, International Trade Usages, Institute of International Business Law And Practice Newsletter, Special Issue, ICC Publ.440,4, Paris 1987 Kersley, R.H., M.A., LL.M./ Broom, Herbert, LL.D., A Selection of Legal Maxims, 10th ed. London, 1939 Hartkamp, Arthur, The UNIDROIT Principles for International Commercial Contracts and the New Dutch Civil Code, in: CJHB Brunner-Bundel, Deventer 1994, at 127 et seq. Maskow, Dietrich, Beispiel für allgemeine vertragsrechtliche Regeln, in: Ak.St.Rwiss.DDR (ed.), Grundzüge einer wissenschaftlichen Konzeption des allgemeinen Teils der rechtlichen Regelung internationaler Wirtschaftsbeziehungen zwischen den Organisationen der Mitgliedsländer des RGW, Potsdam-Babelsberg 1986, at 38 et seq. Noy, William, A Treatise of the Principal Grounds and Maxims with an Analysis of the Laws of England, 1821 Bonell, Michael Joachim, The UNIDROIT Initiative for the Progressive Codification of International Trade Law, 27 ICLQ 1978, at 413 et seq. Kahn, Philippe, L’interpretation des contrats internationaux, 108 Clunet 1981, at 5 et seq. Knütel, Rolf, Rechtseinheit in Europa und römisches Recht, 3 ZEuP 1994, at 244 et seq. Lalive, Pierre, The First World Bank Arbitration (Holiday Inns v. Morocco) - Some Legal Problems, 51 Brit.Yb.Int’l L. 1980, at 123 et seq. Lowenfeld, Andreas F., Lex Mercatoria: An Arbitrator's View, Arb.Int’l 1990, at 133 et seq. Marrella, 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 2003 Mustill, Michael, The New Lex Mercatoria: The First Twenty-five Years, Arb.Int'l 1988, at 86 et seq. Paulsson, Jan, La Lex Mercatoria dans l‘Arbitrage C.C.I, Rev.d.Arb. 1990. at 55 et seq. Fouchard Gaillard Goldman on International Commercial Arbitration (edited by Emmanuel Gaillard and John Savage) The Hague 1999 Craig, W. Laurence/ Park, William W./ Paulsson, Jan, International Chamber of Commerce Arbitration, 3rd ed., Dobbs Ferry 2000 Derains, Yves, note to ICC Award No. 3243, Clunet 1982, at 970 et seq. Derains, Yves, note to ICC Award No. 3380, Clunet 1981, at 930 et seq. Derains, Yves, note to ICC Award No. 8331, Clunet 1998, at 1044 et seq. suggest references The TransLex-Team is thankful for any contribution.
close X ICC Award No.1434, Clunet 1976, at 978 et seq. ICC Award No. 3243, Clunet 1982, at 968 et seq. ICC Award No. 3380, YCA 1982, at 116 et seq. (also published in: Clunet 1981, at 928 et seq.). ICC Award No. 3460, Clunet 1981, at 939 et seq. ICC Award No. 7920, YCA 1998, at 80 et seq. ICC Award No. 8331, 10 ICC Bull. No. 2, 1999, at 65 et seq. (also published in: Clunet 1998, 1041) ICC Award No. 8365, Clunet 1997, at 1078 et seq. ICSID Award, AMCO Asia Corp. et al. v. The Republic of Indonesia et al., YCA 1985, at 61 et seq. ICSID Award, Asian Agricultural Products Ltd. v. The Republic of Sri Lanka, YCA 1991, at 106 et seq. Ad Hoc-Award of May 27, 1991, YCA 1992, at 11 et seq. The Government of the State of Kuwait v. The American Independent Oil Company (AMINOIL), YCA 1984, at 71 et seq. Ad-Hoc-Award, Kuwait v. The American Independent Oil Company (AMINOIL), 21 ILM 976 suggest references The TransLex-Team is thankful for any contribution.
close X BGH NJW 1993, at 1925 BGH NJW-RR 1990, at 817 et seq. BGH, NJW 1999, 3704 Shaw Group Inc. v Triplefine International Corporation, 322 F.3d 115. Svenska Petroleum Exploration AB (Schweden) vs. Government of the Republic of Lithuania & AB Geonafta (Lithuania), in: Yearbook Comm. Arb'n XXXI (2006), at 906 et seq. Antonio Mastrobuono and Diana G. Mastrobouno, Petitioners, v. Sherason Lehman Hutton, Inc. et al., 115 S.Ct. 1212 (1995) Energy Transport Ltd. v. M.V. San Sebastian, 348 F Suppl. 2d 186 BGH NJW 2005, 2618 BGH NJW 1998, 2966 Interpretation of Peace Treaties, ICJ Rep. 1950, at 221 et seq. Acquisition of Polish Nationality, P.C.I.J. Ser. B, No. 7 suggest references The TransLex-Team is thankful for any contribution.
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Please cite as: "Commentary to Trans-Lex Principle No. IV.5.3 - Interpretation in favour of effectiveness of contract, http://www.trans-lex.org/925000"
1 This principle follows from the general principle of interpretation pursuant to which contract interpretation must always seek to determine the common intentions of the parties.
2 The assumption behind that Principle is that each contract is aimed at achieving the parties' common commercial objective. Therefore, contract interpretation of terms which convey different meanings and of which one renders the terms redundant or even absurd or the contract invalid, should always focus on that meaning of the contractual terminology which gives a certain effect to the words or validity to the contract as a whole.