In the Supreme Court case of Tael -v Morgan Stanley, the appeal raised a question of contractual interpretation. The contractual condition formed part of the Loan Market Association standard terms and conditions commonly used in the secondary loan market. There was no dispute as to the relevant legal principles.
The Supreme Court upheld the Court of Appeal’s ruling, dismissing the appeal in a closely argued judgement, the court stating “…The absence of any provisions addressing the possibility of default by the borrower, … [was] … a further indication that it is not intended to confer a right to additional payment.”
Commercial law disputes are complex and time consuming. By seeking advice at an early stage, various pitfalls can be avoided.