BU231 Chapter Notes - Chapter 10: Contra Proferentem
Document Summary
The relationship between formation and interpretation of contracts: Often disputes arise due to misunderstanding of meanings of the contract. Disagreeing with the other party"s interpretation of the contract. Compromise of their interpretation is found when lawyer proves their interpretation beneficial or fair. People give benefit of doubt even with ambiguity. Court apply both approaches and choose best in circumstance. Look at past transactions how they conducted things. Will seek corroboration of one"s version when given two different testimony. Court looks at what testimony more reasonable based on experiences with other similar issues. Base their version with the most credible version. Courts first look at dictionary definition of words then take it in the context of situation. Sometimes there are special words that only people in the particular field know. Courts break down words so both parties have knowledge of the word so one party isn"t taking advantage.
