What are the key principles of contract law interpretation?

What are the key principles of contract law interpretation?

The key principles include the plain meaning rule, the intent of the parties, and the context of the contract.

Can you explain the plain meaning rule?

Sure! The plain meaning rule states that if the language of the contract is clear and unambiguous, it should be interpreted according to its ordinary meaning.

What if the contract language is ambiguous?

If the language is ambiguous, courts may look at extrinsic evidence, such as the parties' intentions and the circumstances surrounding the contract.

Are there any specific cases that illustrate these principles?

Yes, cases like Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co. highlight how courts interpret ambiguous contract terms.