Construction of contractual terms
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| Australian Consumer Law 2010 (Cth). Similarly, s 9(2)(g) of the Contracts Review Act 1980 (NSW) provides that ‘the physical form of the contract, and the intelligibility of the language in which it is expressed’ is a factor that can go towards establishing that a contract is ‘unjust’.
In summing up the benefits of plain English in legal drafting, Butt191 writes as follows: Legal language should not be a language of coded messages, unintelligible to ordinary citizens. Modern, plain English can cope with the concepts and complexities of the law and legal process. It is as capable of precision as traditional legal English. The few technical terms that a lawyer might feel compelled to retain for convenience or necessity can be incorporated without destroying the document’s legal integrity. The modern English of a legal document will never read like a good novel, but it can be attractive and effective in a clean, clear, functional style. 1 Life Insurance Co of Australia Ltd v Phillips (1925) 36 CLR 60 at 78. 2 Kidd v The State of Western Australia [2014] WASC 99 at [120]. 3 Royal Botanic Gardens and Domain Trust v South Sydney Council (2002) 240 CLR 45 at 52; 186 ALR 289 at 292-3; Commissioner of State Revenue (Vic) v Snowy Hydro Ltd [2012] VSCA 145 at [83]; The Australian Special Opportunity Fund LP v Equity Trustees Wealth Services Ltd (2015) 298 FLR 147 at 163; 323 ALR 570 225 at 585; Mercanti v Mercanti [2016] WASCA 206 at [72]. 4 Byrnes v Kendle (2011) 243 CLR 253 at 286; 279 ALR 212 at 238. 5 Gosper v Sawyer (1985) 160 CLR 548 at 568-9; 58 ALR 13 at 26. 6 [1978] 1 All ER 948 at 953. 7 Hon Justice Kenneth Martin, ‘Contractual Construction: Surrounding Circumstances and the Ambiguity Gateway’ (2013) 37 Australian Bar Review 118, pp 138-9. 8 Australian Broadcasting Commission v Australasian Performing Rights Association Limited (1973) 129 CLR 99 at 109. 9 (2011) 243 CLR 253 at 284; 279 ALR 212 at 236-7. 10 [2009] 1 AC 1101 at 1113-4; [2009] 4 All ER 677 at 688. 11 [2010] AC 180 at 186 -referred to with approval in HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342 at [145]. 12 [2015] AC 1619 at 1640; [2016] 1 All ER 1 at 18-9. 13 Prestcold (Central) Ltd v Minister of Labour [1969] 1 All ER 69 at 75; Dura (Australia) Constructions Pty Ltd v Hue Boutique Living Pty Ltd (2013) 41 VR 636 at 646; Healthcare Australia Pty Ltd v Randstad Pty Ltd [2016] NSWSC 1407 at [19]. 14 Robbins v Federal Commissioner of Taxation (1974) 129 CLR 332 at 339; Fitness First Australia Pty Ltd v Fenshaw Pty Ltd [2016] NSWCA 207 at [43]; HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342 at [161]. 15 Wilkie v Gordian Runoff Limited (2005) 221 CLR 522 at 529; 214 ALR 410 at 413; Durham v BAI (Run Off) Ltd (in scheme of arrangement); Re Employers’ Liability Policy ‘Trigger’ Litigation [2012] 3 All ER 1161 at 1176; Mercanti v Mercanti [2016] WASCA 206 at [70]; Black Box Control Pty Ltd v Terravision [2016] WASCA 219 at [42]; HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342 at [134]. 16 (1996) 67 FCR 402 at 411; 137 ALR 433 at 442. 17 (1865) 55 ER 853 at 856. 18 Meehan v Jones (1982) 149 CLR 571 at 589; 42 ALR 463 at 475. 19 Australian Broadcasting Commission v Australasian Performing Rights Association Limited (1973) 129 CLR 99 at 109. 20 International Fina Services AG v Katrina Shipping Ltd (The Fina Samco) [1995] 2 Lloyd’s Rep 344 at 350. 21 Sirius International Insurance Company (Publ) v FAI General Insurance Limited [2005] 1 All ER 191 at 200. 22 Marquis of Cholmondeley v Lord Clinton (1820) 37 ER 527 at 559. 23 Brett v Barr Smith (1918) 26 CLR 87 at 93; Sydney Attractions Group Pty Ltd v Schulman [2013] NSWSC 858 at [66]. 24 [2010] NSWCA 64 at [167]-[170]. 25 [1967] 1 QB 302 at 313-4. 26 [2014] WASC 99 at [121]. 27 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 at 179; 211 ALR 342 at 352; International Air Transport Association v Ansett Australia Holdings Ltd (2008) 234 CLR 151 at 174; 242 ALR 47 at 63; Byrnes v Kendle (2011) 243 CLR 253 at 284; 279 ALR 212 at 236-7; Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 at 656; 306 ALR 25 at 33; Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 at 116; 325 ALR 188 at 197; Simic v New South Wales Land and Housing Corporation [2016] HCA 47 at [78]. 28 [2010] 2 NZLR 444 at 458. 29 [1998] 1 All ER 98 at 114. 30 [2009] 1 AC 1101 at 1119; [2009] 4 All ER 677 at 693. 31 [1998] 1 All ER 98. 32 (1982) 149 CLR 337 at 352; 41 ALR 367 at 374. 33 (2002) 240 CLR 451 at 62-3; 186 ALR 289 at 301. 34 In a footnote to their judgment in Byrnes v Kendle (2011) 243 CLR 253 at 285; 279 ALR 212 at 23, Heydon and Crennan JJ noted that the High Court had not pronounced on the issue of whether there was an inconsistency between the approaches of Lord Hoffmann and Mason J. 35 (1982) 149 CLR 337 at 352; 41 ALR 367 at 374. 36 Western Export Services Inc v Jireh International Pty Ltd (2011) 282 ALR 604 at 605; Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited (2015) 256 CLR 104 at 116, 134; 325 ALR 188 at 198, 211. 37 (2015) 256 CLR 104 at 116; 325 ALR 188 at 198. 38 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 at 132; 325 ALR 188 at 210. 39 (1982) 149 CLR 337 at 352; 41 ALR 367 at 374. 40 (2013) SASR 53 at [53]. 41 [2007] NSWCA 235 at [12]. 42 [2016] VSC 75 at [156]. To similar effect see South Sydney Council v Royal Botanic Gardens [1999] NSWCA 478 at [35]. 43 Bisognin v Hera Project Pty Ltd [2016] VSC 75 at [157]. 44 [2012] WASCA 60 at [24]. 45 (1999) 21 WAR 425 at 436. 46 Trawl Industries of Australia Ltd v Effem Foods Pty Ltd (1992) 27 NSWLR 326 at 358. 47 (2014) 48 WAR 261 at 274. 48 (1988) 5 ANZ Ins Cases 75,336 at 75,343. 49 (2014) 89 NSWLR 633 at 654-5; 310 ALR 113 at 132. 50 (2014) 251 CLR 640 at 656-7; 306 ALR 25 at 33-4. 51 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR at 360; 41 ALR 367 at 373-374, citing Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976] 1 WLR 989 at 995-6. 52 Zhu v Treasurer of New South Wales (2004) 218 CLR 530 at 559; 211 ALR 159 at 180. 53 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633 at 63; 310 ALR 113 at 130. 54 Western Export Services Inc v Jireh International Pty Ltd (2011) 282 ALR 604. 55 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; 306 ALR 25. 56 [2016] NSWCA 297 at [59]. 57 (2014) 89 NSWLR 633 at 654; 310 ALR 113 at 132. 58 (2016) 328 ALR 564. 59 (2016) 239 FCR 12 at 28-9; 330 ALR 454 at 470-1. 60 (2015) 256 CLR 104; 325 ALR 188. 61 (1982) 149 CLR 337 at 352; 41 ALR 367 at 374. 62 (2014) 89 NSWLR 633; 310 ALR 113. 63 [1998] 1 All ER 98. See B Michael & D Wong, ‘Recourse to Contractual Context Reaffirmed’ (2015) 89 Australian Law Journal 181, p 187. 64 (2014) 314 ALR 166 at 174. 65 (2014) 89 NSWLR 633; 310 ALR 113. 66 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; 306 ALR 25. 67 [2014] QSC 311 at [153]-[168]. 68 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; 306 ALR 25 69 Western Export Services Inc v Jireh International Pty Ltd (2011) 282 ALR 604. 70 (2014) 89 NSWLR 633; 310 ALR 113. 71 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; 306 ALR 25. 72 Western Export Services Inc v Jireh International Pty Ltd (2011) 282 ALR 604. 73 (2014) 48 WAR 261 at 270-1. 74 [2016] VSCA 280 at [138]. 75 [2016] NSWCA 370 at [86]. 76 [2002] 1 AC 251 at 269; [2001] 1 All ER 961 at 975. 77 (2009) 76 NSWLR 603 at 678. 78 (1982) 149 CLR 337 at 352; 41 ALR 367 at 374-5. 79 [2014] NSWCA 319 at [110]. 80 (2015) 256 CLR 104 117; 325 ALR 188 at 198. 81 Oceanbulk Shipping & Trading SA v TMT Asia Ltd [2011] 1 AC 662 at 679-83; [2010] 4 All ER 1011 at 1024-7. 82 [2006] EWCA Civ 1732 at [21]-[22]. See also McGrath v Sturesteps; Sturesteps v HIH Overseas Holdings Ltd (in liquidation) [2011] NSWCA 315 at [17]; Kidd v The State of Western Australia [2014] WASC WASC 99 at [126]. 83 [2014] 2 SCR 633 at 661-2. 84 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 All ER 98 at 114. 85 Sattva Capital Corporation v Creston Moly Corporation [2014] 2 SCR 633 at 663. 86 (1982) 149 CLR at 352; 41 ALR 367. 87 Hancock Prospecting Pty Ltd v Wright Prospecting Pty Ltd (2012) 45 WAR 29 at 50; 294 ALR 550 at 566. 88 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, p 55. 89 L Schuler AG v Wickman Machine Tool Sales Limited [1974] AC 235 at 251; [1973] 2 All ER 39 at 45. 90 [2009] 1 AC 1101 at 1113; [2009] 4 All ER 677 at 687. See also Bisognin v Hera Project Pty Ltd [2016] VSC 75 at [146]. 91 Australian Broadcasting Commission v Australasian Performing Rights Association Limited (1973) 129 CLR 99 at 109-10. 92 State Lotteries Office v Burgin [1993] NSWCA 254 at [4]; New South Wales Lotteries Corporation Pty Ltd v Kuzmanovski (2011) 195 FCR 234 at 244. 93 Westpac Banking Corporation v Tanzone Pty Ltd [2000] NSWCA 25 at [19]-[20]. 94 Dainford Ltd v Smith (1985) 155 CLR 342 at 364; 58 ALR 285 at 301; Dodds v Kennedy (No 2) (2011) 42 WAR 16 at 26, 31. 95 McGrath v Sturesteps; Sturesteps v HIH Overseas Holdings Ltd (in liquidation) [2011] NSWCA 315 at [17]; Gloria Jean’s Coffee v Western Export Services Inc [2011] NSWCA 137 at [55]. 96 Schwartz v Hadid [2013] NSWCA 89 at [31]; Current Images Pty Ltd v Dupack Pty Ltd [2012] NSWCA 99 at [47]. 97 [2015] NSWCA 363 at [148]. 98 Miwa Pty Ltd v Siantan Properties Pty Ltd [2011] NSWCA 297 at [18]; Apple and Pear Australia Ltd v Pink Lady America LLC [2016] VSCA 280 at [152]. 99 [2013] NSWCA 179 at [34]. 100 National Australia Bank Ltd v Clowes [2013] NSWCA 179 at [38]. 101 [2009] NSWSC 1486. 102 (2008) 73 NSWLR 53. 103 [2013] NSWSC 1063 at [48]-[50]. 104 Geys v Société Générale, London Branch [2013] 1 AC 523 at 538; [2013] 1 All ER 1061 at 1076. 105 Pagnan SpA v Tradax Ocean Transportation SA [1987] 3 All ER 565 at 574; Alexander v West Bromwich Mortgage Company [2016] EWCA Civ 496 at [33]-[35]. 106 Pagnan SpA v Tradax Ocean Transportation SA [1987] 3 All ER 565 at 578. 107 (1993) 178 CLR 379 at 386-7; 115 ALR 321 at 326. 108 (1925) 35 CLR 449 at 455. 109 [2010] NSWSC 985 at [13]. See also North v Marina [2003] NSWSC 64 at [43]-[46]. 110 Australian Broadcasting Commission v Australasian Performing Rights Association Limited (1973) 129 CLR 99 at 109. 111 Bedroff Pty Ltd v Rennie [2002] NSWSC 928 at ]59]; Leonie’s Travel Pty Limited v International Air Transport Association (2009) 255 ALR 89 at 106; Macdonald v Kavshan Pty Ltd; Villarica v Kavshan Pty Ltd [2016] NSWSC 731 at [30]-[31]. 112 [2004] 1 AC 715 at 737; [2003] 2 All ER 785 at 794, cited with approval in Al Achrafi v Topic [2016] NSWSC 1807 at [33]. 113 [1987] 3 All ER 565 at 578. 114 [1913] 2 KB 387. 115 Howe v Botwood [1913] 2 KB 387 at 391. 116 Maggbury Pty Ltd v Hafele Australia Pty Ltd at CLR 198; ALR 163; Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 at 201; [1984] 3 All ER 229 at 233; Rainy Sky SA v Kookmin Bank [2012] 1 All ER 1137 at 1149; Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 at 656; 306 ALR 25 at 33-4; Zhang v ROC Services (NSW) Pty Ltd [2016] NSWCA 370 at [95]-[97]. 117 (2008) 234 CLR 151 at 160; 242 ALR 47 at 51-2. 118 (2015) 256 CLR 104 at 117; 325 ALR 188 at 198. 119 (2014) 251 CLR 640 at 657; 306 ALR 25 at 34. 120 [1997] AC 749 at 770–1; [1997] 3 All ER 352 at 372. 121 [2015] AC 1619 at 1628; [2016] 1 All ER 1 at 7. 122 [2011] EWHC 2111 (Ch) at [45]-[46]. 123 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 All ER 98 at 115. 124 [2006] EWCA Civ 1932 at [21]-[22]. 125 Rainy Sky SA v Kookmin Bank [2012] 1 All ER 1137 at 1146; BMA Special Opportunity Hub Finance Ltd and others v African Minerals Finance Ltd [2013] EWCA Civ 416 at [24]; Fons Hf (in liquidation) v Corporal Ltd [2014] EWCA Civ 304 at [15]. 126 [2011] NSWCA 137 at [55]. 127 [2015] AC 1619 at 1628-9; [2016] 1 All ER 1 at 7. See also Lindsay v Noble Investments Limited [2015] NZCA 588 at [16]. 128 [2008] NSWCA 102. 129 Idya Pty Ltd v Anastasiou [2008] NSWCA 102 at [50]. 130 John White & Sons Pty Ltd v Changleng (1985) 2 NSWLR 163 at 164-5. 131 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, p 57. 132 [2012] NSWSC 15 at [40]. 133 (2016) 91 NSWLR 439 at 457-8; 332 ALR 507 at 526-7. 134 (2014) 250 CLR 664 at 672; 306 ALR 594 at 599-600. 135 (2013) 278 FLR 49 at 71; 304 ALR 436 at 456-7. 136 Johann Steyn, ‘Pepper v Hart; A Re-Examination’ (2001) 21 Oxford Journal of Legal Studies 59, p 60. 137 G McMeel, The Construction of Contracts, Interpretation, Implication, and Rectification, 2nd ed, Oxford University Press, Oxford, 2011, p 159. 138 J W Carter, The Construction of Commercial Contracts, Hart Publishing, Oxford, 2013, p 446. 139 BHP Petroleum (Australia) Pty Ltd v Sagasco South East Inc [2001] WASCA 159 at [24]. 140 [2016] WASCA 219 at [42]. 141 Australia and New Zealand Banking Group Ltd v Compagnie D’Assurances Maratimes Aeriennes Et Terrestres [1996] 1 VR 561 at 565; Globe Motors, Inc v TRW Lucas Varity Electric Steering Ltd [2016] EWCA Civ 396 at [61]. 142 [1971] 3 All ER 237 at 240–1. 143 [2016] EWCA Civ 396 at [61]. 144 (1982) 149 CLR 337 at 352; 41 ALR 367 at 375. 145 Lord Nicholls of Birkenhead, ‘My Kingdom for a Horse: The Meaning of Words’ (2005) 121 Law Quarterly Review 577. 146 [2009] 1 AC 1101; [2009] 4 All ER 677. 147 [1971] 3 All ER 237. 148 Byrnes v Kendle (2011) 243 CLR 253 at 284-5; 279 ALR 212 at 236-7. 149 Hon J J Spigelman, ‘From Text to Context: Contemporary Contractual Interpretation’ (2007) 81 Australian Law Journal 322, pp 331-6. 150 [2010] 2 NZLR 444. 151 Vector Gas Limited v Bay of Plenty Energy Limited [2010] 2 NZLR 444 at 473-4. 152 (1990) 20 NSWLR 310 at 316. 153 (1919) 26 CLR 183 at 197. 154 (1907) 5 CLR 68 at 78. 155 (1926) 37 CLR 529 at 538. 156 (1973) 130 CLR 353 at 446. 157 (2008) 238 CLR 570 at 582; 251 ALR 322 at 330. 158 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603 at 678-82; Byrne v Macquarie Group Services Australia Pty Ltd [2011] NSWCA 68 at [40]; World Best Holdings Limited v Sarkar [2010] NSWCA 24 at [19]-[20]; County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 at [161]; Pethybridge v Stedikas Holdings Pty Ltd [2007] NSWCA 154 at [59]; Ryan v Textile Clothing & Footwear Union of Australia [1996] VR 235 at 261; Lederberger v Mediterranean Olives Financial Pty Ltd (2012) 38 VR 509 at 518; Secure Parking (WA) Pty Ltd v Wilson (2008) 38 WAR 350 at 373 159 [2008] 1 NZLR 277 at 283, 288–9, 294–7, 298–9, 308–11. 161 Gibbons Holdings Limited v Wholesale Distributors Limited [2008] 1 NZLR 277 at 297. The approach of Tipping J was reaffirmed by the Court of Appeal in AAI Limited v 92 Lichfield Street Limited (in receivership and in liquidation) [2015] NZCA 559 at [47]. 162 Process Minerals International Pty Ltd v Consolidated Minerals Pty Ltd [2011] WASCA 219 at [98]; Paul Fishlock v The Campaign Palace Pty Limited [2013] NSWSC 531 at [103]-[114]; Technomin Australia Pty Ltd v Xstrata Nickel Australasia Operations Pty Ltd (2014) 48 WAR 261 at 290. 163 (1943) 67 CLR 266. 164 (1937) 59 CLR 348 at 356. 165 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 at 248-50; 41 ALR 367 at 375 at 372-6; Australasian Medical Insurance Ltd v CGU Insurance Ltd (2010) 271 ALR 142 at 156-7; Canberra Hire Pty Ltd v Koppers Wood Products Pty Ltd [2013] ACTSC 162 at [203]-[208] 166 Lodge Partners Pty Ltd v Pegum (2009) 255 ALR 516 at 521. 167 Damien v JKAM Investments Pty Ltd [2015] NSWCA 368 at [28]. 168 (1918) 24 CLR 312. 169 (2012) 38 VR 509 at 515-6. 170 Cooper v Hobbs [2013] NSWCA 70 at [54]; Brambles Holdings Ltd v Bathurst City Council (2000–1) 53 NSWLR 153 at 164; Stirnemann v Kaza Investments Pty Ltd [2011] SASCFC 77 at [17]-[18]; Hughes v St Barbara Ltd [2011] WASCA 234 at [106]; Hopcroft & Edwards v Edmonds (2013) 116 SASR 191 at 214; Pavlovic v Universal Music Australia Pty Ltd (2015) 90 NSWLR 605 at 625-6. 171 [2012] WASCA 72 at [193]. 172 Bankway Properties Ltd v Pensfold-Dunsford [2001] 1 WLR 1369 at 1380. 173 Great North Eastern Railway Ltd v Avon Insurance plc [2001] 2 Lloyd’s Rep 649 at 655. 174 Johnson v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 at [84]. 175 Lym International Pty Ltd v Marcolongo [2011] NSWCA 303 at [143]; Hightime Investments Pty Ltd v Adamus Resources Ltd [2012] WASC 295 at [98]-[99]. 177 Mineralogy Pty Ltd v Sino Iron Ltd (No 6) (2015) 329 ALR 1 at 113. 178 C Mitchell C, ‘Entire Agreement Clauses: Contracting out of Contexualism’ (2006) 22 Journal of Contract Law 222; E Peden & J W Carter, ‘Entire Agreement - And Similar – Clauses’ (2006) 22 Journal of Contract Law 1. 179 Hon J J Spigelman, ‘From Text to Context: Contemporary Contractual Interpretation’ (2007) 81 Australian Law Journal 322, p 336. 180 [2013] NSWSC 447 at [44]. 181 See for example Hydrofibre Pty Ltd v Australian Prime Fibre Pty Ltd [2013] QSC 163 at [93]; Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633 at 659-60; 310 ALR 113 at 137. 182 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, p 47. 183 [1986] UKPC 6 at 9. 184 [2014] EWHC 2442 (Ch) at [30]. 185 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, p 1. 186 K O’Brien, ‘Judicial Attitudes to Plain Language and the Law (2009) 32 Australian Bar Review 204. 187 B McKillop, ‘What Lawyers Think About Plain Legal Language’ (1994) 32 New South Wales Law Society Journal (May) 68. 188 Quoted in P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, p 102. 189 M Kirby, ‘Ten Commandments for Plain Language in Law’ (2010) 33 Australian Bar Review 10, p 14. 190 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, pp 104-13. 191 P Butt, Modern Legal Drafting, A Guide to Using Clearer Language, 3rd ed, Cambridge University Press, Cambridge, 2013, pp 128-9. 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