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Contract – Implied term. The claimants sought to sell off a company involved in the commercial exploitation of an oilfield. They entered into a participation agreement with the defendant bank. The bank sold the company for a price that the claimants considered too low, and they brought proceedings. The Chancery Division held that, on the true construction of the agreement, there had not been an implied term that the bank had been obliged to take reasonable precautions and exercise reasonable care to obtain the best price reasonably obtainable.
Contract – Implied term. The claimants sought to sell off a company involved in the commercial exploitation of an oilfield. They entered into a participation agreement with the defendant bank. The bank sold the company for a price that the claimants considered too low, and they brought proceedings. The Chancery Division held that, on the true construction of the agreement, there had not been an implied term that the bank had been obliged to take reasonable precautions and exercise reasonable care to obtain the best price reasonably obtainable.
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