Elements of Contract Interpretation

Contents......Page 8
Preface......Page 12
1.1. Goals of Contract Interpretation......Page 16
1.1.1. The Contractual Freedoms......Page 18
1.1.2. Other Goals......Page 22
1.2. Tasks in Contract Interpretation......Page 23
1.2.1. Unambiguous Terms......Page 24
1.2.2. Kinds of Ambiguous Terms......Page 27
1.2.3. Resolving Ambiguities......Page 29
1.2.4. The Limits of Parties’ Intention......Page 30
1.3.1. Literalism......Page 32
1.3.2. Objectivism......Page 36
1.3.3. Subjectivism......Page 43
2. The Elements......Page 50
2.1. Literalist Elements......Page 51
2.1.1. The Words of the Contract......Page 52
2.1.3. Literalism and Context......Page 53
2.2.1. The Whole Contract......Page 56
2.2.2. Objective Circumstances......Page 57
2.2.3. Purpose(s)......Page 59
2.2.4. Ordinary Meanings......Page 60
2.2.5. Trade Usages and Customs......Page 62
2.2.6. Legal Precedents and Statutory Definitions......Page 63
2.2.7. Practical Construction (Course of Performance)......Page 65
2.3. Subjectivist Elements......Page 66
2.3.1. Prior Course of Dealing......Page 67
2.3.2. The Course of Negotiations......Page 69
2.3.4. Subjective Circumstances......Page 71
2.4.1. “Standards of Preference in Interpretation”......Page 72
2.4.2. Canons of Interpretation......Page 74
2.4.3. Good Faith in Interpretation......Page 75
2.5. Relevant Non-Interpretive Rules......Page 76
3.1. The Parol Evidence Rule......Page 78
3.1.1. Statement of the Rule......Page 79
3.1.2. Goals of the Rule......Page 84
3.2. Integrated Written Contracts......Page 85
3.2.1. Writings and Electronic Records......Page 86
3.2.2. Kinds of Integrated Agreements......Page 89
3.2.3. Establishing a Document’s State of Integration......Page 92
3.3. Non-Consequences of Integration......Page 108
3.3.1. Collateral Agreements......Page 109
3.3.2. Formation, Invalidating Causes, and Conditions......Page 112
3.3.3. Finding and Resolving Ambiguity......Page 118
4. The Ambiguity Question......Page 120
4.1. The Nature of Ambiguity......Page 121
4.2.1. The Plain Meaning and Four Corners Rules......Page 124
4.2.2. Decision Procedures......Page 126
4.2.3. Judge and Jury......Page 133
4.2.4. The Parol Evidence Rule Distinguished......Page 135
4.3. Unambiguous Contracts......Page 137
4.3.1. Literal Meaning of a Word or Phrase......Page 138
4.3.2. The Plain Meaning of a Document......Page 141
4.3.3. Extrinsic Evidence......Page 143
4.4.2. Sentence Ambiguity......Page 149
4.4.3. Structural Ambiguity......Page 151
4.4.4. Vagueness......Page 152
4.5.1. Corbin......Page 153
4.5.2. The Restatement (Second) of Contracts......Page 154
4.5.3. The Uniform Commercial Code......Page 155
4.6. Criticisms of the Plain Meaning and Four Corners Rules......Page 158
4.6.1. Subjectivist Criticisms......Page 159
4.6.2. Objectivist Rejoinders......Page 161
5. Resolving Ambiguities......Page 166
5.1.1. Question of Law or Fact?......Page 167
5.1.2. Literalism, Judge, and Jury......Page 170
5.1.3. Objectivism, Judge, and Jury......Page 171
5.1.5. Jury Instructions......Page 172
5.2. Judicial Resolution of Ambiguity......Page 173
5.2.1. Ordinary Meanings......Page 174
5.2.2. The Whole Contract......Page 177
5.2.3. The Course of Negotiations......Page 180
5.2.4. The Circumstances......Page 183
5.2.5. Purpose(s)......Page 185
5.2.6. Statements of the Parties’ Intention or Understanding......Page 187
5.2.7. Trade Usages and Customs......Page 188
5.2.8. Course of Dealing......Page 191
5.2.9. Practical Construction (Course of Performance)......Page 193
5.2.10. Statutes and Judicial Precedents......Page 195
5.2.11. Standardized Agreements......Page 196
5.2.12. Reasonableness, Lawfulness, and Fairness......Page 197
5.3.1. Default Rules......Page 201
5.3.2. Interpretation Against the Drafter......Page 202
5.3.3. No Agreement......Page 203
5.4.1. Insurance Contracts......Page 204
5.4.2. Others......Page 206
6. Objective Contextual Interpretation......Page 208
6.1. The Three Tasks in Contract Interpretation......Page 209
6.1.1. Identifying Contract Terms......Page 210
6.1.2. The Question of Ambiguity......Page 218
6.1.3. Resolving Ambiguity......Page 226
6.2.1. Pluralist and Monist Theories......Page 229
6.2.2. Economic Analysis......Page 233
6.3.3. The Conventions of Language Use......Page 235
6.3. Summary of Major Points......Page 238
A......Page 242
C......Page 243
G......Page 244
L......Page 245
O......Page 246
P......Page 247
R......Page 248
S......Page 249
W......Page 250