A Unified Approach to Contract Interpretation

Book excerpt: Interpretation or construction is central to the operation of contract law. Despite the fundamental role it plays, there have been limited attempts to explain construction in holistic terms. This important book aims to fill that gap by offering a systematic exposition of the iterative process. It also goes further, suggesting practical solutions to disputes regarding questions of interpretation. The book argues that construction is not simply about establishing what words mean; it is a process through which objective intention is inferred from the choice of words in a contract. The interpretive process involves four steps: formulate the question of interpretation in dispute; explore competing answers to the question; analyse the admissible material supporting each interpretation; and weigh and balance the competing considerations. By so doing, the book offers a simple yet sophisticated framework for interpreting/constructing contracts.