Law 5110 Study Guide - Quiz Guide: Financial Services Compensation Scheme, Parol Evidence Rule, West Bromwich Building Society
Document Summary
Interpretation = to establish one meaning for all parties affected by the contract. To give preference to the real" intention of the parties. However; the actual" intention of a party can never be established even a psychological investigation into a party"s mind is not likely to show the real intention at the time of contracting. The only thing that can be apparent to the other party. Protects a party"s reliance on the words actually used. French cc requires the court to find the common intention of the parties. If the intention cannot be discerned, the contract must be interpreted in a way that a reasonable person in the same situation would interpret it. German bgb the aim of interpretation must be to ascertain the real intention". However, it also includes that the interpretation should take place in accordance with fairness and reasonableness taking into account general practice. English law the contract must be interpreted according to its literal meaning.
