Summary: Interpretation Of Contracts

Read the summary and the most important questions on Interpretation of Contracts

• 2 Rules of Interpretation

  This is a preview. There are 1 more flashcards available for chapter 2
  Show more cards here

• 2.1 General Principle: The Intention as Seen from the Perspective of the Addressee

  This is a preview. There are 3 more flashcards available for chapter 2.1
  Show more cards here

• What is the fundamental goal of interpretation?

  Establishing parties' intentions at the time of conclusion of a ctt.

• What is the objective aspect of interpretation?  

  The perspective adopted to determine each parties' intention

   

• What is the importance of analysing the context of negotiations?

  It's the context that shapes the words' underlying meanings. An absolutely objective meaning is not possible.

• 2.2 The significance of wording and the need for its meticulous analysis

• Why is the wording the starting point of interpretation?

  It is the outward manifestation of parties' intentions.

• How does one apply the criteria of reasonableness in face of a given wording?

  Through a comparison of the situation at hand with situations that are (i) clearly inside and (ii) clearly outside the literal scope of the clause.

• 2.5.3 Involvement of third parties and commercial contracts

  This is a preview. There are 3 more flashcards available for chapter 2.5.3
  Show more cards here

• Why do third parties rely exclusively on the wording of agreements?

  They do not have access to the individual circumstances accompanying the ctt conclusion.

• What is the problem with the DCFR position re 3rd parties' interpretation of a ctt?

  Unless the ctt was specifically directed for 3rd parties, their reliance shouldn't have priority over the ctting parties' individual autonomy. 

   

• Why doesn't the mere potential of reliance justify prevalence of 3rd parties' perspective?

  As a general rule of party autonomy, any assignee or creditor have to take the ctt terms as defined by the ctting parties.

   

• Why is there a presumption of conformity with commercial custom?

  Because these constitute the objective framework of the declarations.

• 2.5.4 Interpretation Contra Proferentem

  This is a preview. There are 1 more flashcards available for chapter 2.5.4
  Show more cards here

• What is the goal of contra proferentem rule?

  Ensuring that the other party's legitimate legal position is only restricted to an extent that is made perfectly clear in the contract, not by an ambiguous/poorly drafted clause. The burden hence lies with the drafting party.