Principles of Interpretation/Meaning of Agreement

Question 1

Misunderstanding when:

Answer 1

Was term ambiguous?
Did parties have different language interpretation?
Was misunderstanding material

Question 2

Ambiguous

Answer 2

subject to more than one meaning

Question 3

General language interpretation

Answer 3

generally, K language is interpreted in accord w/ its ORDINARY MEANING

Question 4

How are K terms interpreted?

Answer 4

in accordance with the intent of the parties

Question 5

Definitions of terms

Answer 5

contained in statutes or scientific texts are relevant evidence of a K’s meaning but not determinative unless evidence indicated the parties created the K w/such meaning in mind

Question 6

Common law requirement as to ambiguity?

Answer 6

must show that the term in question is patently ambiguous

Question 7

Patently Ambiguous

Answer 7

the term’s ambiguity is plain on its face such that extrinsic evidence is not needed to reveal uncertainty of meaning. Under this rule, courts are barred from considering evidence regarding the meaning unless the term if facially receptive to multiple interpretations

Question 8

If ambiguous, P must prove?

Answer 8

1. susceptible to more than 1 meaning;
2. one party knows or has reason to know the other’s intended meaning;
   other party does not or have reason to know the meaning attached to the disputed language by the first party.
   Courts will enforce K in accordance with innocent’s meaning.

Question 9

Ambiguous terms that have acquired trade usage

Answer 9

interpreted as they would usually be understood by practitioners of the profession of business to which they relate. Trade usage is not binding on novices in a trade (unless there is proof of such actual knowledge or generally known in the community

Question 10

Peerless

Answer 10

historically mutual mistake voids a contract. traditional view = meeting of the minds

Question 11

Latent Ambiguity

Answer 11

would not appear on its face, levvidence would dettermine

Question 12

Adhesion Contract

Answer 12

standard take it or leave it K where buyer has little or no bargaining power

Question 13

Doctrine of Reasonable Expectations

Answer 13

objectively reasonable expectations of applicants and intended beneficiaries regarding the terms of insurance contracts will be honored even though painstaking study of the poicy provisions would ahve negated those expectations.