What is Contract Interpretation?
The overall aim of interpreting contracts is to determine what the parties meant by it when it was signed.
Being able to read a contract means you’re in a better position, before you sign the contract, to:
- decide whether the contract will do what you want it to do
- find the holes in your contract
- work out where you stand in a contract dispute
- identify the legal intention of the parties in the contract as a whole, and not individual words
- figure out why someone else reads it a different way
- promote certainty of outcome
As you will see below, business people are probably the best people to interpret their own contracts. Make more informed decisions as a result.
You can see where the problems might lie and focus your efforts when negotiating it.