Interpretation of Contracts
/ˌɪntərprɪˈteɪʃən əv ˈkɒntrækts/
Definitions
- (n.) The process by which courts or parties determine the meaning and effect of contractual terms.
The court's interpretation of contracts often depends on the intent of the parties at the time of agreement.
- (n.) A legal principle guiding how ambiguous or unclear contractual terms are construed, often favoring the party that did not draft the contract.
Courts apply rules of interpretation of contracts to resolve ambiguities in favor of the non-drafting party.
Forms
- interpretation of contracts
- interpretation of contract
- interpretations of contract
- interpretations of contracts
Related terms
See also
Commentary
Interpretation of contracts is a foundational concept in contract law, focusing on discerning the parties’ intent and resolving ambiguities. Drafters should aim for clarity to minimize disputes over interpretation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.