What is the interpretation of a contract?

The interpretation of a contract in South Carolina is when a court attempts to determine the true meaning of a written agreement. When a contract is disputed between two or more parties, the court will look at the language used in the document as well as the context of the document to decide what the parties intended to agree upon. The court will decide what the contract means and the rights and obligations that derive from it. In order to interpret a contract, the court will look at the facts and evidence presented in order to determine whether the contract is ambiguous or clear. If a contract is ambiguous, then the court will use general principles of contract interpretation to determine the meaning. These general principles include the interpretation of the language used, the parties’ prior conduct, and the overall purpose of the agreement. The court will also consider the four corners of the contract when interpreting it. This means that the court will look at the language used in the specific document without relying on any outside or extraneous evidence. This is important because it is the only way for the court to accurately determine the parties’ intentions. Lastly, the court will consider the parol evidence rule when interpreting a contract. The parol evidence rule states that any evidence that is outside the four corners of the contract and contradicts the language of the contract cannot be used to interpret the agreement. This rule is important because it helps to maintain the certainty that contracts are meant to provide.

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What is the interpretation of a contract?

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