What is the ratio in Rainy Sky v Kookmin Bank?

Where contractual language is ambiguous, courts should prefer the interpretation that accords with business common sense rather than purely literal textual analysis.

What did the court decide in Rainy Sky v Kookmin Bank?

The Supreme Court ruled that refund guarantees covered insolvency occurring before ship delivery, applying commercial common sense to interpret ambiguous terms.

Why is Rainy Sky v Kookmin Bank important for contract law?

It established the modern approach to contractual interpretation, requiring courts to balance literal textual analysis with commercial common sense and business reality.

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