INTERPRETATION OF CONTRACT

Rules for interpretation of contract

 Words versus figures

In the event of any discrepancy between words
and figure appearing in a contract agreement, the
words will prevail.
 General versus special provisions in the
contract
If an agreement contains both general and special
provisions relating to the same thing, special
provision will prevail.
Rules for interpretation of contract

 Written words versus printed words

When a contract is partly printed and partly
written by hand or type written, and the hand
written or type written cannot be reconciled with
the printed portion, the provision made in hand
written or type written portion will prevail. The
reason behind this particular rule is that the
written words are the immediate/latest language
and the parties themselves chose these provisions
for the expression of their meaning.
Rules for interpretation of
contract
 Deleted words versus alterations
Deletions made before the contract is signed are
not to be considered and alterations made before
signing the contract are binding. The contract is
therefore to be read as amended for the purpose
of interpretation.
 Contract to be read as a whole
It is a fundamental rule of interpretation that a
contract must be construed as a whole to gather
the intention of the parties.
 Rules for interpretation of contract

 Reasonable and favorable meaning

When the terms of a Contract are ambiguous and one
interpretation is leading to unreasonable results, the
Court will not adopt that interpretation. The Court in
such a situation will try to find out the real intention of
the parties to give a reasonable and favorable
meaning consistently with the rules of law. In a
construction contract, where the argument of the
employer on the interpretation of the contract, that
the contractor was bound to complete the work in time
even though extras were ordered, this rule was
applied and the argument was rejected by the Court.
Rules for interpretation of contract

 Clerical errors
In case of obvious clerical error in a contract, the
court will give a correct meaning to it by
correcting or reading the error as corrected.