Contract law Assignment Example | Topics and Well Written Essays - 500 words

Contract law - Assignment Example The language of the contract is suffice to identify the mutual intent of the parties in a case where the language used is definite and clear. Courts always consider the course of the parties’ dealings if the language of the contract is unclear. The course of dealings refers to the initial contract and transactions the parties might have had in the past to interpret their conduct and expressions. When determining the clarity and definiteness of the language of a contract, the court views the terms in their common and ordinary construct of meaning unless it is apparent that the parties constructed the language in some technical or special sense (Gillies 71). If the words are used in a technical sense, the courts will apply a concept known as trade usage, which is the court’s consideration of constructing the meaning as per how it is used by a person in the same profession or business and formulate interpretation from that context unless the parties had not intended to use them as such. Generally, courts one of the two problematic rules governing admissions of evidence that is extrinsic to interpret a contract. One of the rules is the Plain Meaning Rule, which connects contract terms interpretation to the subjective notions of a Judge of the meaning of the words and deter parties from issuing evidence to change the meanings that are publically used are unanimously acknowledge. The Context Rule on the other side looks at the parties’ evidence subjective intention exclusive of the public meaning of the terms, which also, undermines the function of contract predictability (Gillies 63). The third rule, which is The Public Meaning Rule, only admits the extrinsic evidence produced by the public and constructs the meaning of the language as interpreted by the public. It considers the public domain while making assumptions on the extrinsic evidence of the subjective intent of the parties. This rule has epistemological element that relies on the fact