Interpretation of contracts

These rules on interpretation are like exclusion clauses themselves. Couchman v Hill [] KBa written exclusion clause can be Interpretation of contracts by express and inconsistent undertakings at the time of the contract.

In the Netherlands, the courts have firmly rejected the parole evidence rule, even in commercial settings. Fighting fire with fire just fans the flames of confusion. Furthermore, the parties should make sure that everyone involved understands the terms and that they are on the same page when it comes to definitions of certain words at the time of contract formation.

The court will then perform contract interpretation to determine exactly what the parties meant by the word when they drafted the contract.

Sometimes the contract will expressly refer to and incorporate into the contract the terms of the other written material. Contract provisions may be considered ambiguous if consideration of the plain meaning and context of the provision can lead to two or more reasonable constructions.

However, the Supreme Court has now made it clear that the starting point is the natural meaning of the language used; commercial common sense cannot be relied on to undervalue the importance of the language of the provision which is to be construed.

The overall purpose of the clause and the contract. Usually the court will resolve any uncertainty or doubt surrounding a provision against the party who would benefit from the suggested interpretation. The courts should not ordinarily infer that a contracting party has given up rights which the law confers upon him to an extent greater than the contract terms indicate he has chosen to do.

So, for example, the words "or other inevitable accident" in a clause making reference to "fire, flood, storm, tempest" means other accidents of a similar kind. Courts will be slow to reject the meaning of a provision simply because one of the parties made a bad bargain; it is not for the court to improve the positions of the parties by re-writing the contract.

Rules for interpreting contracts (1)

Shed thou no blood ; nor cut thou less nor more, But just a pound of flesh: In appropriate cases the court will recognise standard practice in particular trades or areas of industry and is willing to imply terms into an agreement to reflect this practice, provided the wording of the contract is not inconsistent with the implication.

If it is apparent that the words were used in a technical sense, the court will consider how the words are normally used by persons within that business or profession i.


Please try after sometime. Curtis v Chemical Cleaning and Dyeing Co Ltd [] 1 KBa party cannot rely on an exclusion clause if he has misrepresented its effect. The question arises whether the additional material is part of the contract. Inside Interpretation of Contracts. This guide summarises the general approach taken by the English courts to contractual interpretation.

Contract interpretation takes place at every stage of an acquisition: Sometimes, if the contract is unclear, external evidence besides the contract may be used for interpreting intent, such as a record of previous dealings between the parties.

Unless otherwise specified, the definition will be applied every time that word appears. In the Netherlands, the courts have firmly rejected the parole evidence rule, even in commercial settings. A primary goal of this course is to examine and apply the principles of contract interpretation to avoid misunderstandings and disputes.

However, if the particular terms of the contract in question are found to be ambiguous, courts may choose to disregard the contract and use external evidence outside of the contract for assistance.

It would be preferable to be forthright and say unreasonable clauses will be struck down, while applying ordinary principles of construction. Technical or scientific words are usually given their technical or scientific meanings unless the context indicates otherwise. In practice the situations in which courts are prepared to imply a term into a contract are limited.

Please try after sometime. What will be decisive is what the meaning that the parties were entitled to reasonably expect of the provision, and of each other, in the given circumstances. English law takes a purposive and commercial approach to the construction of contracts. 2 The starting point for the court is to identify the intention of the contracting parties.

The Dutch legal system takes a unique approach to the interpretation of contracts, going to great lengths to give effect to parties’ true contractual intentions, even if. Interpreting contracts in English law is an area of English contract law, which concerns how the courts decide what an agreement means.

It is settled law that the process is based on the objective view of a reasonable person, given the context in which the contracting parties made their agreement. Interpretation. Explore the process by which courts determine the meaning of indefinite, ambiguous, or omitted terms in a contract to allow enforcement, as well as.

The Dutch legal system takes a unique approach to the interpretation of contracts, going to great lengths to give effect to parties’ true contractual intentions, even if they are not properly reflected in the wording of the contract.

That’s where the contract-interpretation and contract-construction “rules” hide, which, in addition to statutes, case law, and doctrine, will inform the contract reader how to interpret the provision at issue.

Interpretation of contracts
Rated 5/5 based on 71 review
Interpreting contracts in English law - Wikipedia