What is an interpretation clause?

What is an interpretation clause?

: a clause inserted in a statute or contract declaring the interpretation that is to be put upon certain words.

What is the primary rule of interpretation in contracts?

Articles 1370 to 1379 of the Civil Code cover the rules on interpretation of contracts under Civil Law. Foremost among these rules are: If the terms of the contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.

What are commercial terms in a contract?

Commercial Terms means any additional terms agreed between the Company and the Customer with respect to the Customer’s license of Aplas, including Fees, and (where relevant) includes any proposal or order form accepted in writing by the Customer and agreed by the Company.

What standard does a court use to interpret a contract?

Ordinary Meanings
Ordinary Meanings Ordinary meaning is the standard that the court uses for determining the language of the contract. This is also known as the dictionary definition or common use. Unless the contract is shown to be using specific technical language, it will be interpreted using ordinary meaning.

Which rule of interpretation is called the Heydon’s rule?

Mischief Rule was originated in Heydon’s case in 1584. It is the rule of purposive construction because the purpose of this statute is most important while applying this rule. It is known as Heydon’s rule because it was given by Lord Poke in Heydon’s case in 1584.

What is the difference between definition clause and interpretation clause?

When the word “means” is used in the definition it is a “hard-and-fast” definition and no meaning other than that which is put in the definition can be assigned to the same. A clause inserted in a statute or contract declaring the interpretation that is to be put upon certain words.

What is Ejusdem generis rule in law?

The term Ejusdem Generis in other words means words of a similar class. The rule is that where particular words have a common characteristic (i.e. of a class) any general words that follow should be construed as referring generally to that class; no wider construction should be afforded.

What is the first rule of contract interpretation?

The first rule of contract interpretation is to take the contract at face value and interpret the words at issue according to their ordinary meaning. Following this rule works best when the contract terms are clear and specific.

What is a commercial standard form contract?

A contract is considered to be standard form if: it is for the supply of goods, services, or land; one (or both) of the parties is a small business with fewer than 20 employees; and. the contract price is not higher than $300,000 (or $1 million if the contract is for more than one year).

What is the cardinal rule in the interpretation of contracts?

“The cardinal rule for interpretation of contracts is to ascertain the intention of the parties and to give effect to that intention, consistent with legal principles.” Bob Pearsall Motors, Inc.

Which rule of interpretation is best?

Editor’s Note: The golden rule is that the words of a statute must prima facie be given their ordinary meaning. It is yet another rule of construction that when the words of the statute are clear, plain and unambiguous, then the courts are bound to give effect to that meaning, irrespective of the consequences.

What does functus officio mean in law?

Functus Officio is the principle in terms of which decisions of officials are deemed to be final and binding once they are made. They cannot, once made, be revoked by the decision maker. Both the granter and receiver of rights know where they stand. The doctrine supports fairness and certainty.

What is the four corners rule?

The four corners rule contract law, also known as the patrol evidence rule, stipulates that if two parties enter into a written agreement, they cannot use oral or implied agreements in court to contradict the terms of the written agreement.

Are standard form contracts binding?

Contracts of adhesion, also referred to as standard form contracts, are most often used in commercial contexts. These contracts are prima facie valid and enforceable.

What do you understand by a recital in a deed of transfer?

Recitals Of Deed: The recital of the deed must be short and intelligible. The recital of a deed must contain a brief history of the property up to its vesting in the transferor. Narrative recitals means facts and circumstances which show the nature of interest to be dealt with.

When in the definition clause given in any statute the word “means” is used, what follows is intended to speak exhaustively. A clause inserted in a statute or contract declaring the interpretation that is to be put upon certain words.

When a court interprets a contract the court tries to find?

The court would then perform contract interpretation in order to determine exactly what the parties meant by the word “delivery” when drafting the contract. Ultimately, the goal of contract interpretation is to come to a definition that most clearly reflects the original intent of the parties who authored the contract.

The cardinal rule in the interpretation of contracts is embodied in the first paragraph of Article 1370 of the Civil Code: “[i]f the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.”

What is an interpretation clause in a contract?

Most commercial contracts include an interpretation clause that sets out the rules of construction that the parties intend to apply to the contract. The clause can often be the place to look for significant concepts in a legal document.

Is the sample interpretation clause a boilerplate clause?

The sample interpretation clause is a standard “boilerplate” clause; that is, it is a clause of the type that will ordinarily be inserted into most commercial contracts with minimal alteration other than selecting appropriate options where the clause provides for this.

When to use the word’interpretation’in a sentence?

Interpretation. In this Agreement, unless the context otherwise requires: Interpretation.

How is commerce defined in the Commerce Clause?

“Commerce” might be limited to the trade, exchange or transportation of people and things, which would exclude, for example, agriculture, manufacturing, and other methods of production; or it might expansively be interpreted to refer to any gainful activity or even to all social interaction.