Here the Court of Appeal had to decide when deleted words in a contract could be taken into account to resolve an ambiguity in the remaining words.  A debtor had applied to set aside a IVA on the basis that a modification to it failed to incorporate a condition precedent which had existed in the original. 

The court dismissed the appeal, noting that the substituted provision was intended to replace the original clause in its entirety.  In doing so, it considered the circumstances in which it is appropriate to consider deleted words.  The reasoning in Mopani Copper Mines v Millennium Underwriting [2008] was approved, namely that the court should construe the substituted words, and if they are unambiguous reference to deleted text will not be necessary.

However where ambiguity exists in the remaining words then the deletions may be referred to as an aid to construction in determining what it is that the parties agreed they did not agree.  However it also confirmed that care must be taken when referring to deleted text.

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