How Do Judges Interpret Real Estate Contracts?
In construing a contract, the primary objective is to ascertain and give effect to the intention of the parties.
Contracts should be liberally construed so as to give them effect and carry out the intentions of the parties.
The parties’ intention, must in the first instance, be derived from the language of the contract.
In construing terms in contracts, the court must first look at the language
To discover the intention of a contract, the court must first look to its language.
If the language is perfectly plain and capable of legal construction, the language alone determines contract’s force and effect.
Parties are governed by their outward expressions and the judge is not at liberty to consider the parties’ secret intentions.
If a contract’s language is plain, unambiguous, and capable of only one reasonable interpretation, no construction is required and the contract’s language determines the contract’s force and effect.
Where a contract is is clear and capable of legal interpretation, the judge only function is to interpret the lawful meaning, discover the intention of the parties as found within the agreement, and give effect to it.
The judge must enforce an unambiguous contract according to the contract’s terms, regardless of the contract’s wisdom or folly or the parties’ failure to guard their rights carefully.
Posted by : Byron King on 5/8/18 (This information is only accurate as of 5/8/18. You must contact SCR for updates and changes to this information after 5/8/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)