Scribd
Upload
17 views8 pages

Interpretation of Contracts 2

The document discusses principles for interpreting contracts under ambiguity or uncertainty. It states that customs and usages of place should be considered when interpreting ambiguities. Interpretation should not favor the party that caused obscurity. For gratuitous contracts with incidental doubts, interpretation should result in the least transmission of rights. For onerous contracts, interpretation should favor greatest reciprocity. If doubts cannot be resolved and the principal object is unknown, the contract is null and void.

Uploaded by

Cyril Cyf Balo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views8 pages

Interpretation of Contracts 2

The document discusses principles for interpreting contracts under ambiguity or uncertainty. It states that customs and usages of place should be considered when interpreting ambiguities. Interpretation should not favor the party that caused obscurity. For gratuitous contracts with incidental doubts, interpretation should result in the least transmission of rights. For onerous contracts, interpretation should favor greatest reciprocity. If doubts cannot be resolved and the principal object is unknown, the contract is null and void.

Uploaded by

Cyril Cyf Balo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Interpretation of

Contracts
Presented by: Cyril Cyf Balo
Effects of Usage
or Customs of
the Place
The usage or customs of the place
shall be borne in mind in the
interpretation of the ambiguities of
the contract, and shall fill the
omission of stipulations which are
not ordinarily established.
Interpretation
Against Party
Causing Obscurity
The interpretation of obscure
words or stipulation in a
contract shall not favor the
party who caused the
obscurity.
Rule on Impossibility
to Settle Doubts
When it is absolutely impossible to settle doubts by the rules established in the
preceding articles, and the doubts referred to incidental circumstances of a
gratuitous contract, the least transmission of rights and interests shall prevail. If
the contract is onerous, the doubt shall be settled in favor of the greatest
reciprocity.

If the doubts are cast upon the principal object of the contract in such a way that it
cannot be known what may have been the intention or will of the parties, the
contract shall be null and void.
Doubts on Incidental
Circumstances of a
Gratuitous Contract
This refer to uncertainties or
disagreements that may arise regarding
non-essential details or aspects of a
contract that is entered into without any
exchange of value or consideration.
Gratuitous contracts are typically based
on goodwill or generosity rather than a
formal exchange of something of value.
Doubts on Incidental
Circumstances of an
Onerous Contract
This pertain to uncertainties or disputes
related to non-essential details or elements
of a contract that involves a consideration
or an exchange of something of value
between the parties. Onerous contracts
typically involve both parties receiving
benefits or incurring obligations in
exchange for something valuable.
Principles of Interpretation

THE PRINCIPLES OF INTERPRETATION


STATED IN RULE 123 OF THE RULES OF
COURT SHALL HKEWISE BE OBSERVED
IN THE CONSTRUCTION OF THE
CONTRACT
Thank
you

You might also like