10 Rules of Contract Interpretation

These are the 10 rules of contract interpretation:

1. A clearly written contract does not need interpretation. Hence, if the terms are clear and does not leave any doubt as to the intention of the contract parties, the literal meaning of the stipulations prevails and controls.

2. If there is a conflict with the words and the evident intention of the parties, it is the latter that will prevail. The intention of the parties is principally determined and considered based on their contemporaneous and subsequent acts. That is to say, the actions of the parties at the time of preparing the contract and their subsequent acts will determine their true intentions.

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