BU231 Chapter Notes - Chapter 10: Parol Evidence Rule, Contra Proferentem, Standard Form Contract
Document Summary
There are two approaches to the interpretation of words: Strict (plain-meaning) approach: an approach that restricts interpretation to the ordinary or dictionary meaning of a word. Meaning of words may change from time to time and place to place. Context of the words in a contract may make it obvious that they have been used in a special sense. Liberal approach: an approach that looks to the intent of the parties and surrounding circumstances, and tends to minimize, but does not ignore, the importance of the words actually used. Stresses the circumstances surrounding the contract, negotiations leading up to it, the knowledge of the parties, and any other relevant facts. A court will apply both approaches and choose the best meaning for the circumstances. A court will often seek corroboration of one of their versions, if possible, from a non-party or from the actions of the parties in relations to the contract.
