STUDY UNIT 11

Question 1

THE ULTIMATE AIM:

Answer 1

the ultimate aim of interpretation of a contract is to give effect to the purpose expressed by those terms.

Question 2

THE SUPREME COURT OF APPEAL:

Answer 2

has emphasized that interpretation is a unitary, rather than a step-by-step process.

Question 3

In determining the meaning of a contract,

Answer 3

in determining the meaning of a contract, an interpretation favoring validity, practicality, and business efficacy should be preferred than one that does not.

Question 4

THE PAROL EVIDENCE RULE:

Answer 4

declares that where parties intended their agreement to be fully and finally embodied in writing, evidence that would contradict, vary, add to or subtract to the terms of the writing is inadmissible.

Question 5

THE PAROL EVIDENCE MANIFESTS ITSELF IN 2 WAYS: The 2 aspects:

Answer 5

1. Integration aspect: it determines what evidence is admissible in proving the contents of the contract.
   -is this a term of the contract?
2. Interpretation aspect: it determines what evidence is admissible in proving the meaning of the words used by the parties to express those term.
   -what does this term mean?

Question 6

WHAT IS THE INTEGRATION RULE?

Answer 6

defines the limits of the contract, it determines what evidence is admissible to prove which provisions are contained in the contract.

Question 7

WHERE IS THE INTEGRATION RULE NOT APPLICABLE:

Answer 7

1. in the question of whether or not the parties intended to draw up an exclusive memorial of their agreement
2. where an oral part of their agreement that the parties did not intend is embodied in writing
3. where an aggrieved party alleges fraud, misrepresentation, mistake, undue influence, duress or illegality
4. where a document is signed by only one of the parties.

Question 8

RECTIFICATION DOCTRINE:

Answer 8

a party who alleges that the parties mistakenly inserted a term into a written contract, or that they mistakenly failed to include one in it, may apply for the rectification of the mistakenly concluded contract.

Question 9

CANONS OF CONSTRUCTION:

Answer 9

are regarded as mere guidelines aimed at assisting the court in interpreting a contract

Question 10

EIUSDEM GENERIS RULE:

Answer 10

stipulates that ‘words with a general meaning are restricted when used in association with words relating to a species of a particular class.’

Question 11

NOSCUITUR A SOCIIS:

Answer 11

this rule states that words are known or understood by the company they keep.

Question 12

UT RES MAGIS VALEAT QUAM PEREAT:

Answer 12

if a term is ambiguous, it should be given a meaning that would make it effective.

Question 13

CONTRA PROFERENTUM RULE:

Answer 13

which states that the terms of a contract, if capable of more than one meaning, are to be interpreted against the party who proposed them.