What are the common law rules of contract interpretation?

Common law rules of contract interpretation are principles that courts use to understand and apply the terms of a contract in legal disputes. These rules help clarify ambiguous language and determine the intentions of the parties involved. Here are some key common law rules of contract interpretation:

1. Plain Meaning Rule

The plain meaning rule states that the terms of a contract should be interpreted according to their ordinary and usual meaning. This rule requires courts to look at the language of the contract itself to determine the intent of the parties.

2. Contra Proferentem Rule

The contra proferentem rule comes into play when there is ambiguity in a contract. This rule states that any ambiguity should be interpreted against the party who drafted the contract, as they are presumed to have had more control over the terms.

3. Course of Performance

Courts may also consider the course of performance between the parties when interpreting a contract. This involves examining how the parties have acted in carrying out the terms of the agreement in the past to determine their intentions.

In conclusion, common law rules of contract interpretation are essential in resolving disputes and clarifying the terms of legal agreements. By following these principles, courts can ensure fair and consistent outcomes in contract disputes.