What are the principles of contract interpretation under Admiralty Law?

Under Admiralty Law, contract interpretation is based on certain principles. These principles are meant to help adjudicators establish a proper and accurate reading of a contract. The first principle is the ‘plain meaning’ rule. This rule requires that the interpretation of a contract should seek out the obvious meaning of the words used in the contract. If the terms are clear and unambiguous, then the contract should be interpreted in line with its literal meaning. The second principle is the ‘contra proferentem’ rule. This rule states that any ambiguity or doubt in the interpretation should be resolved against the party who drafted the contract. This rule is applied to interpret the specific clauses in the contract, and not the general principles applicable to both parties. The third principle is the ‘commercial efficacy’ rule. This rule holds that if any term of the contract is not fulfilled, then the court should interpret the contract in such a way that it achieves commercial efficacy. That is to say, the court should interpret the contract according to how it would have been most effective in upholding the parties’ intentions. Finally, the fourth principle is the ‘prior dealings’ rule. This rule establishes that if the parties have engaged in prior dealings, then the court should take these into consideration when interpreting the contract. Prior dealings may be taken into consideration when determining the parties’ intentions, but they may not be used to establish an overall interpretation of the contract.

What are the principles of contract interpretation under Admiralty Law?

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