Monday, 10 August 2015

What is the Law in your Life?

5 things you should know about interpretation of contracts:

1.  A contract between two parties will generally be interpreted according to its terms i.e. within the four walls of the document.

2.  The contract will be considered as a whole

3.  Where the words used in a contract are clear and not open to more than one interpretation, a court must give them their natural meaning and cannot substitute what it, or one of the parties, considers a more commercially sensible outcome.

4.  Where however there are two possible constructions of a contract, the court is entitled to prefer the construction which is consistent with business common sense and reject the other.

5.  Clarity is key when adjusting contracts in an effort to avoid possible ambiguity and therefore uncertainty.