Sarum Hotel v Select Agencies [1987] JLR 343 (26 November 1987)

Sarum Hotel v Select Agencies [1987] JLR 343 (26 November 1987)

The court held that the intention of the parties to a lease must be ascertained from the words of the lease itself, interpreted in their ordinary and reasonable meaning within the context of the lease, and not from extrinsic evidence. Where ambiguity exists, the contra proferentem rule may be applied.

Citation
[1987] JLR 343
Parties
Applicant: Sarum Hotel; Respondent: Select Agencies
Jurisdiction
Jersey
Judgment Date
26 November 1987
Procedural Posture
Civil / Judgment
Outcome
judgment for applicant
Legal Topics
Lease Interpretation, Intention of Parties, Contra Proferentem
Contract Law Property Law Lease Interpretation Intention of Parties Contra Proferentem

Case Brief

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Parties

Sarum Hotel

Applicant

Select Agencies

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 How should the intention of parties to a lease be ascertained?
  2. 2 Is extrinsic evidence admissible in interpreting the lease?
  3. 3 When is the contra proferentem rule applicable?

Ratio Decidendi

The court held that the intention of the parties to a lease must be ascertained from the words of the lease itself, interpreted in their ordinary and reasonable meaning within the context of the lease, and not from extrinsic evidence. Where ambiguity exists, the contra proferentem rule may be applied.

Court Disposition

judgment for applicant