What is the interpretation of a contract?

A contract is an agreement between two or more parties that is designed to be legally enforceable. In New Hampshire, contract law is governed by the Uniform Commercial Code. The interpretation of a contract is the determination of the legal meaning of the words and terms used in the contract. This means deciphering what the parties agreed to and the obligations they have. In New Hampshire, a court will interpret a contract based on what a reasonable person in the position of the parties would have intended. This means that a court will look at the express and implied terms of the contract. Express terms are explicit and clearly stated in the agreement while implied terms can be inferred by a reasonable person based on the language used in the contract. It is important to note that if there is ambiguity in the language of the contract, a court will often interpret the language against the interest of the drafter or the party who wrote the contract. In addition to the interpretation of the words and terms used in a contract, a court will also look at the significant facts and circumstances of the transaction. This includes the context in which the contract was entered into, the parties’ negotiations before signing the contract, and other facts that may have impacted the agreement. Overall, the interpretation of a contract is an important part of contract law. It is critical that parties understand their rights and obligations before signing any contract. A court will look at all the facts and circumstances of the contract before making a judgment about what the parties intended.

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