Contract –Is a Commercial Document

The Hon’ble Apex Court in Union of India v. D.N. Revri and Company, (1976) 4 SCC 147 held that a commercial document between the parties must be interpreted in such a manner as to give efficacy to the contract rather than to invalidate it. It was further held:
“It must be remembered that a contract is a commercial document between the parties and it must be interpreted in such a manner as to give efficacy to the contract rather than to invalidate it. It would not be right while interpreting a contract, entered into between two parties, to apply strict rules of construction which are ordinarily applicable to a conveyance and other formal documents. The meaning of such a contract must be gathered by adopting a common sense approach and it must not be allowed to be thwarted by a narrow, pedantic and legalistic interpretation.” Govind Rubber Limited v. Louis Drefus Commodities Asia Private Limited, (2015) 13 SCC 477.

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