On The Interpretation Of Contracts

In civil, economic activities, the contract is a very important legal relationship people generally used to define the contract between the rights and obligations of both parties. However, due to various reasons, the parties have a bias in the understanding of the contents of the contract and they cannot solve the disputes themselves, then take legal action.In judicial practice, when the judges interpret contracts, the judges often appear on the contract interpretation work inadequate understanding, arbitrary interpretation of the rules, and even abuse of power on behalf of their clients. To address the practice of many problems, the article explains various basic issues of contract interpretation in details, as well as the interpreting rules of contract interpretation on the basis of the historical development process and the root causes of the foundation. These two aspects above strengthen the judges in theory when interpreting the contracts, and the use of specific interpreting rules play an important role on the original ideas of the parties and on the restrictions of the value judgments from the judges themselves, and then a fair and reasonable result of the interpretation comes out. These are conducive to solve the disputes of the contract and guarantee the smooth transaction and maintain the stability of socioeconomic orders.The first chapter of this article discusses the contract interpretation system from the process of evolution, the root causes and the roles of contract interpretation as a basic theoretical groundwork of the interpretation of the contract. The evolution of contract interpretation discusses the history of contract interpretation, and introduces the origin of contract interpretation system from the macro. By the expounding of the causes and effects of contract interpretation, it has a clearer explanation of the reasons for the interpretation of contracts and the significance of them.Chapter II is maily on the the basic issues of contract interpretation, in order to define the basic areas of the theory.By the analysis of the meaning of the contract, the subject and the object and the target, and the specific definition of the above, we can clearly understand the basic theoretical issues of the contract from many ones in the debates. It has laid the theoretical foundation for the coming part of the article.Chapter III is focused on the interpreting rules in the process of contract interpretation. In the judicial process, when the judges interpret contracts, they often run into problems in divergent views which make it difficult to judge the accuracy of the facts.This chapter analyzes the interpreting rules from three aspects which are the interpretations of the general terms of contracts, contract loopholes and the terms format. In the in-depth analysis of the interpretating rules, the author discusses the defects of some existing theoretical views and raises his own views related to the same problems. Through the exposition of interpretating rules, it makes the judges on the one hand, to restrict their own discretion and on the other hand, to find the true ideas of the parties, solve the disputes and achieve the interests of harmony and balance of the contract.Chapter IV of this paper discusses the problems of the current system of contracts interpretation and the methods to them. China has set up a basic system of contract interpretation, but in judicial practice, there are still many problems. This chapter will analyze the the problems from several aspects of the current system of contract interpretation such as legislation, justice and judge occupational attainments, and then achieve the concepts of the corresponding solutions, which are helpful to improve the contract interpretation system.