Value is also used in various expressions in business and commercial use. The term actual present value is used in insurance to refer to the cost of purchasing new replacement assets less normal depreciation, although it may also be determined by the current market value of similar assets or by the cost of replacing or repairing the asset. Cash value is used in life insurance to refer to the amount that the insurer pays to the policyholder if the policy is cancelled before the death of the insured. Unlike the majority, dissent felt that the settlement agreement had not clearly defined the word “value” in the traditional sense. It was the general context of the document that gave it meaning. At paragraph 60, Slatter J.A. “The purpose of establishing that the term `value` has a fixed legal meaning is to extract that term from the contract `as a whole` and to give it a predetermined meaning …` and `any meaning gives way to the express terms of this Agreement`. Justice Slatter took a different approach. He began by interpreting the word value in a contractual rather than a commercial context. He noted that there was a clear formula in the process set out in Article 1. The word value has several meanings and can be used in different meanings. Since value is usually a relative concept, its true meaning must be determined by the context in which it appears. FindLaw.com Free and reliable legal information for consumers and legal practitioners The problem with the majority decision is that it overturned the framework for contract interpretation by first leaving the contract and drawing inspiration from the commercial context.
Sometimes these common terms, for example “value” used in the industry can vary from one court decision to another. This adds a degree of uncertainty when some important terms are not defined in the document. Slatter J. correctly pointed out that the context of the contract should first be interpreted before considering the commercial context. It could be that the majority came to the same conclusion in the end, but by jumping so quickly in the trade environment, the majority brought some degree of uncertainty into trade agreements. On the stock exchange, the par value is the nominal value of the share; It is calculated by dividing the total declared share capital by the number of authorized shares. The declared value is the value of the share par value determined by the Company as the capital of the Company. The carrying amount is the value at which an entity`s assets are recorded in the entity`s books. The carrying amount of a capital asset is determined by deducting accumulated depreciation from the cost of the asset. Book value can also refer to a company`s net assets, which are calculated by deducting liabilities from assets.
The liquidation value is the value of a corporation or asset when it is sold outside the ordinary course of business, such as when a corporation is liquidated. In the new valuation, El Condor conducted a fair market valuation with a discounted cash flow approach to account for the risk and time value of money. Trico`s valuation, on the other hand, did not use discounted cash flows and did not take into account the impact of the tax on value. Trico`s valuation consultant, Deloitte, acknowledged that this was not a market value appraisal and only determined “partnership income to be earned” without deducting income tax or the time value of the money. El Condor wanted the note that took into account deductions, while Trico preferred the without. The disagreement was brought before the courts and the method of valuation was the fundamental issue, in particular the interpretation of clause 1 of the Convention, which calculated the value of the units according to the steps described in its paragraphs. The courts have often used the word value without making it clear whether it was use value or market value. In general, however, courts and civil parties are concerned about market value. While courts may refer to disposable value, actual value, fair value, fair value and present value, these terms are synonymous with market value.
Nevertheless, the majority decision reminds us how important it is to define the key terms of a treaty. The different interpretation of the term “value” in Article 1 of the settlement agreement resulted in a difference of several million dollars. Even dissent reminds us that we should define the concepts of art.
