When a contract dispute arises, there may be differing interpretations of the contract terms. A court asked to construe the disputed terms will look to statutory principles. But don’t wait for a dispute to learn these principles—be aware of them when drafting an agreement to ensure that they won’t counteract your client’s intent.
Generally it’s the parties’ mutual intent that controls a contract’s interpretation. But that intent isn’t always easy to figure out. When the parties dispute a contract’s interpretation and it goes to court, the court applies certain statutory principles. Don’t wait for a dispute to learn these principles—be aware of them and let them guide you as you draft every agreement.