What is the ratio in Arnold v Britton?

The ratio is that courts should not too readily depart from the natural meaning of clear contractual language, even where it produces commercially unreasonable results, particularly in commercial contracts between sophisticated parties.

What did the court decide in Arnold v Britton?

The Supreme Court decided that the service charge clauses meant what they naturally said, requiring the compound 10% increases despite the harsh commercial consequences for leaseholders.

Why is Arnold v Britton important for contract law?

It refined the ICS contextual interpretation approach by emphasizing that clear contractual language should generally be given effect, representing a partial return to textual interpretation in commercial contexts.

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