Cases - R W Green Ltd v Cade Bros Farms
Record details
- Name
- R W Green Ltd v Cade Bros Farms
- Date
- (1978)
- Citation
- 1 Lloyd's Rep. 602, QBD
- Legislation
- Keywords
- Construction contracts - liquidated damages - standard form terms - contract to be considered and construed having regard to parties' bargaining power and industry circumstances - whether parties of equal bargaining power
- Summary
-
A similar view was taken of an industry standard form terms, which are not readily susceptible to a contra proferentem construction. The Court held that the contract, like any commercial contract, must be considered and construed against the background of the trade in which it operates. The conditions were based upon a standard form of conditions produced by the National Association of Seed Potato Merchants, and used by a large majority of seed potato merchants for over 20 years. They had evolved over a much longer period as the result both of trade practice and discussions between the Association and the National Farmers' Union. They were therefore not conditions imposed by the strong upon the weak; but were rather a set of trading terms upon which both sides were apparently content to do business.