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(b) That's wrong. If, after giving the words in a commercial contract their ordinary meaning, the terms can be interpreted in more than one way, the courts will avoid an interpretation that would be commercially inconvenient, unrealistic or nonsensical. Why? Because the courts infer that the parties to a commercial agreement would obviously intend to agree to convenient, realistic or sensible terms.

However, this principle is only used when the terms in question genuinely give rise to an ambiguity of meaning. It is not used to avoid giving effect to clearly expressed and unambiguous terms, even if those terms prove inconvenient or disadvantageous.

Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99.

WIN Corporation Pty Ltd v Nine Network Australia Pty Ltd [2016] NSWCA 297

Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd [2017] HCA 12

In the example, there is no ambiguity which allows the 'commercial realism' principle to be applied.