LIBOR rigging: Difference between revisions
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:—Lord Hoffman in {{cite|Investors Compensation Scheme Ltd|West Bromwich Building Society|1998|1 WLR|896}}}} | :—Lord Hoffman in {{cite|Investors Compensation Scheme Ltd|West Bromwich Building Society|1998|1 WLR|896}}}} | ||
Plainly, what a contract means is fact-dependent | Interpreting the ''[[consensus ad idem]]'' manifested under a contract demands a wholly different approach than does construction of criminal legislation where the defendant’s understanding of the legislation is irrelevant. | ||
Plainly, what a contract means is fact-dependent. A contract testifies to the parties’ mutual understanding and cannot, “mistakes of fact” notwithstanding, be sovereign to it. | |||
Surely, evidence of how ''everyone'' behaved when interacting with the LIBOR Definition will help with what [[reasonable person|a reasonable person]] would have understood it to mean. There can be no better indication of reasonableness than direct evidence of the behaviour of fellow [[Man on the Clapham Omnibus|passengers on the Clapham Omnibus]]. | |||
There is here the odd spectre of the law of [[contract]] forming the backdrop to a criminal allegation. This is rare. Usually, the criminal authorities stay well out of commercial disputes, even where allegations of fraud are flying around, seeing them as a matter of civil loss between merchants perfectly able to look after themselves, and not requiring the machinery of the state. | There is here the odd spectre of the law of [[contract]] forming the backdrop to a criminal allegation. This is rare. Usually, the criminal authorities stay well out of commercial disputes, even where allegations of fraud are flying around, seeing them as a matter of civil loss between merchants perfectly able to look after themselves, and not requiring the machinery of the state. | ||
[[LIBOR]], on which the bank deposits and mortgage repayments of unwitting retail punters depend, made things a bit different. | [[LIBOR]], on which the bank deposits and mortgage repayments of unwitting retail punters depend, made things a bit different. This is no private matter to be sorted out between gentlemen with revolvers. | ||
Nevertheless, still one must apply contractual principles, not criminal ones, to matters of contractual practice. | Nevertheless, still one must apply contractual principles, not criminal ones, to matters of contractual practice. |