English Contract Law – Terms of Contract Interpretation
Knowing how the courts would interpret (sometimes referred to as "construe") a contract's provisions is crucial for practical purposes. If the contract's language is unambiguous, the courts will interpret it from the perspective of a reasonable person, disregarding the business context. Because it exclusively examines text that is located within a page's four corners, this method is occasionally referred to as the "four corners technique." The courts may interpret contracts using commercial common sense if the language is vague or imprecise. The court may read the language in a way that better reflects the purpose of the contract and is consistent with commercial common sense, as in a situation when the language has more than one meaning.
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