The application of English law to a US form contract

SEADRILL v GAZPROM [2009]

The High Court ruled that, despite a contract being derived from documentation originating from the US and using US terminology, the contract must be construed in accordance with English principles of contract law construction where the governing law of the contract is stated to be English law. This case highlighted the danger that international companies need to be aware of if they want to use standard terms from another jurisdiction in a contract governed by English law. The English Courts will interpret contractual provisions in accordance with their local meaning and not that of the originating country.

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