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Codelfa Construction Pty Ltd v State Rail Authority of New South Wales

(1982) 149 CLR 337 · [1982] HCA 24

High Court of Australia · 1982

Good law

Headnote

Leading Australian authority on the admissibility of surrounding circumstances in contractual interpretation and on frustration of construction contracts.

Bench

Stephen, Mason, Aickin, Wilson and Brennan JJ

Facts

An injunction restrained a contractor from working three shifts a day on the Eastern Suburbs Railway, defeating the assumed basis on which the contract price was calculated.

Held

Evidence of surrounding circumstances is admissible to resolve ambiguity, but not to contradict plain meaning. The contract was frustrated by the grant of the injunction.

Key passage

“The true rule is that evidence of surrounding circumstances is admissible to assist in the interpretation of the contract if the language is ambiguous or susceptible of more than one meaning.”

149 CLR 337, 352 (Mason J)

Citation formats

AGLC full

Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337, 352 (Mason J).

AGLC short

Codelfa (1982) 149 CLR 337, 352.

Medium neutral

Codelfa Construction Pty Ltd v State Rail Authority (NSW) [1982] HCA 24.

Authorities considered

  • Prenn v Simmonds

    [1971] 1 WLR 1381

  • Reardon Smith Line Ltd v Yngvar Hansen-Tangen

    [1976] 1 WLR 989