This chapter is particularly long, because it is in effect (rather ambitiously) a textbook of English law of contract. It aims to explain to readers who do not already have a background knowledge of English law (in particular, to lawyers familiar with other legal systems) the concepts which are needed to understand and deal with a contract such as Supplytime, including matters such as English law’s approach to the formation of contracts by companies which are incorporated under a different system of law. It also aims to explain the approach to the interpretation of contractual wording which I will be taking in the discussions of the clauses of Supplytime.
The topics tackled also include limitation of liability and the structure of construction all risks insurance, both of which are essential parts of the background to Supplytime. I did not find a treatment of limitation of liability that I was happy with, and so I thought I should try to write one, and it seemed to me that there has been a misunderstanding of the legal position with regard to construction all risks insurance. particularly in relation to waivers of subrogation.