Claims in contract and tort in English law

For more guidance on claims, causes of action and remedies in English law beyond the Practice Notes below, see the Dispute Resolution module.

Contract interpretation

Interpreting contracts—the guiding principles

This Practice Note summarises the principles applied when interpreting the meaning of contracts, starting with Lord Hoffman’s dicta in Investors Compensation Scheme, ie the objective test (reasonable person), the relevance of background knowledge and the factual matrix, the exclusion of previous negotiations and subjective intent, and the natural and ordinary meaning of words and the specific words used.

See Practice Note: Contract interpretation—the guiding principles.

Rules of contract interpretation

This Practice Note considers key cases (Rainy Sky v Kookmin, Arnold v Britton, Wood v Capita) and specific rules including: whole of the document relevant, commercial common sense (business common sense), avoiding an unreasonable result, saving the document, consistency of terms, standard and printed terms and general and special conditions, mistakes, contra proferentem, ejusdem generis and NOM clauses (No Oral Modification Clauses).

See Practice Note: Contract interpretation—rules of contract interpretation.

Contract

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ICSID publishes 2025 caseload statistics reporting second-highest annual registrations

The International Centre for Settlement of Investment Disputes (ICSID) has published its 2025 caseload statistics, reporting that as of 31 December 2025 it had registered 1,085 arbitration and conciliation cases under the ICSID Convention and Additional Facility Rules since 1972. The latest edition of the 'ICSID Caseload – Statistics' records 63 new cases in 2025, the second-highest number registered in a calendar year. ICSID states that most new cases (58%) invoked its jurisdiction through bilateral investment treaties, followed by state-investor contracts (15%) and domestic investment laws (6%). Of the new cases, 56 are ICSID Convention arbitrations, six are Additional Facility arbitrations and one is a conciliation. Regionally, Sub-Saharan Africa accounted for the largest share of new cases in 2025 (24%), followed by South America (20%) and Eastern Europe and Central Asia (19%). By sector, mining represented 24% of new cases, oil and gas 21% and construction 16%. Of arbitrations concluded in 2025, 67% were decided by tribunals and 33% were settled or otherwise discontinued. Among cases decided by tribunals, 53% upheld investors’ claims in part or in full, while 31% rejected all claims on the merits; 11% declined jurisdiction and 5% were dismissed for manifest lack of legal merit. 60% of tribunal-decided cases resulted in no damages being awarded to investors. Women accounted for 30% of the 240 appointments made to ICSID cases in 2025.

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