Business Law

Business Law News 2018, ISSUE 3

Know These Interpretation Principles Before You Draft a Contract

Posted on June 18, 2018, by Julie Brook, Esq.1

Julie Brook, Esq. has been with CEB since 1995. Before that, she practiced civil litigation with Landels, Ripley & Diamond in San Francisco. She is a volunteer arbitrator with San Francisco’s Department of Human Services.

When a contract dispute arises, there may be differing interpretations of the contract terms. A court asked to construe the disputed terms will look to statutory principles. But don’t wait for a dispute to learn these principles—be aware of them when drafting an agreement to ensure that they won’t counteract your client’s intent.

Here are 11 of the most common principles that the courts use in interpreting contracts:

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