What are the principles of contract interpretation?
Contract interpretation is a legal concept that governs how contracts are read and understood. In Florida, contract interpretation is based on a few main principles, or rules. These include the plain meaning rule, the contra proferentem rule, the reasonable expectations rule, and the principle of good faith. The plain meaning rule dictates that when determining the meaning of a contract, courts will look to the language of the contract itself, without resorting to external evidence. The meaning of the contract should be taken from the ordinary, plain language of the document. The contra proferentem rule states that when there is ambiguity in a contractual provision, the interpretation should be read against the party that drafted it. This is intended to prevent one party from taking advantage of the other. The reasonable expectations rule is a fundamental principle in contract interpretation. It looks to the objective reasonable expectations of the parties, in determining the terms of the contract. The court will examine what the parties could have expected in terms of outcome, when they entered the contract. Finally, the principle of good faith is at the core of contract interpretation in Florida. This is a principle of fairness between the parties, which requires them to act honestly and fairly in their dealings with each other. All parties must act in a reasonable manner, with regard to both their individual interests and the interests of the other party. These four principles of contract interpretation are essential to understanding the language of a contract, and are key to resolving any disputes between the parties.
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