How are contract words and terms interpreted?
What will be an ideal response?
If the parties have not defined the words and terms of a contract, the courts apply the following standards of interpretation:
1. Ordinary words are given their usual meaning according to the dictionary.
2. Technical words are given their technical meaning, unless a different meaning is clearly intended.
3. Specific terms are presumed to qualify general terms. For example, if a provision in a contract refers to the subject matter as "corn," but a later provision refers to the subject matter as "feed corn" for cattle, this specific term qualifies the general term.
4. If both parties are members of the same trade or profession, words will be given their meaning as used in the trade (i.e., usage of trade). If the parties do not want trade usage to apply, the contract must indicate that.
5. Where a preprinted form contract is used, typed words in a contract prevail over preprinted words. Handwritten words prevail over both preprinted and typed words.
6. If there is an ambiguity in a contract, the ambiguity will be resolved against the party who drafted the contract.
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What will be an ideal response?