interpretation of contract?

Question

how does the court decide the meaning of a ambiguous term?

Answer 1

When an ambiguous term is encountered, a court, or just about anyone, must examine the wording very carefully and attempt to discern what is or was the "intent" of the writer.

This may be debated, but a court has to use their experience and best analysis in order to make a decision.

I have seen laws and contracts, composed by attorneys, that contain horrible phrases, open to gazillion interpretations.

Listen sometimes to the differing opinions among a staff of attorneys, regarding the interpretation of the Constitution.

Rarely do more than a "few" agree on anything.

Methinks many have their own agenda in mind.
Congress, composed primarily of attorneys, is a prime example.

Answer 2

Courts can look at other precedents, and they can also look at the law. There is a document of law called the Uniform Commercial Code that exists to provide meanings for ambiguous terms in commercial contracts. Words like "reasonable" have been interpreted and codified in the UCC. Check it out its awesome

Answer 3

It also depends on who wrote the contract often giving preference to the person who did not write the contract. Sometimes terms ambiguous to you are not ambiguous - they may actually be definied by the law.

Answer 4

It depends on whether the contract is several. if it is they may choose to omit that clause and move on. Otherwise they may seek to assertain the intent from the rest of the contact or from similar contracts in that industry. It varies depending on the court and it's willingness to research the matter. It is best in such a situation to provide the court with as much favorable material as possible to sway the decision in your favor.

Answer 5

A legally binding agreement usually signed by both or interested parties.

Answer 6

depending on the state, it is often determined by prior rulings on similar issues. Otherwise it is at the judge's discretion.