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Form N5b Guidance Notes

Form N5b Guidance Notes

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The Frigaliment case is studied by law students across the country, because it lays out and applies the standard maxims of contract interpretation, and illustrates how courts deal with ambiguous terms. The case of Frigaliment Importing Co. v. B.N.S. International Sales Corp. is all about chicken. Though the word “chicken” might not seem like a subjective term, there was enough ambiguity in it to cause two parties to litigate the issue. Plaintiff Frigaliment Importing Co. contracted with poultry supplier (and defendant) B.N.S. International Sales Corp. (BNS) for the sale and delivery of chicken at a set price. The negotiations took place mainly in German, but the English word for “chicken” was used. Frigaliment, a Swiss company, understood the English word “chicken” to mean young chickens that could be used for boiling and frying (that is, broilers), instead of the German word “huhn,” which includes stewing chickens (or fowl). The market price for broilers was roughly 20

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