Commercial purpose and business common sense in contractual interpretation

Abstract

This Analysis examines the Supreme Court case of Rainy Sky SA v Kookmin Bank. This case is significant for it not only sheds light on when and how business common sense can be deployed by the courts, the dicta can be read as an important qualification of the circumstances in which courts can depart from the clear and unambiguous meaning of the words in a contract in order to give effect to its commercial purpose or to make the contract more commercially sensible.