On The Interpretation Of Contracts Of The Application Of Law

Contract, as the outcome of the unanimous declarations of theintentions of the contracting parties, is the law made by the contractingparties for purpose of the interests of themselves. It is necessary forthe contract that jural relations is definitude. However, when agreed byboth parties, the consensus between intentions of the parties is anobjective existence relatively independent from the parties. Because ofthe impact of diversities of language meanings, the parties'ownlimitations as well as the cost of contracting, contract ambiguity is anormal phenomenon including semantic contradictions, unclear expressions,and semantic surplus. This is contrary to the requirements of thecontract that contractual rights and obligations must be clearly. So thedisputes have taken place. This contradiction reflected in the judicialpractice is mainly on how to interpret the contract in order to determinethe legal facts.Contract interpretation is necessary. What is the contractinterpretation? Who has the right to explain? What kind of explanation isneeded? What is the nature, functions and purposes of explanation? Allthese mentioned above are questions that can't be avoided. It is necessary that these questions should be discussed in detail.In Civil Law, contract interpretation is the performance of thetheory of expression of intention under the concept of the legal action.It includes stated interpretation, supplementary explanation and fictionexplanation. Under Anglo-American law system, the essence of theestablishment of the contract is the promise made by the parties, ratherthan the agreement in mind. Corresponding to it, to the contractinterpretation issue, the common law does not value the inner meaning ofthe parties, but focus on the ordinary meaning of the expression.Contract interpretation includes interpretation, construction and impliedterms theory. The discussion of the contract interpretation is meaningfulonly in judicial practice. People who have the right of contractinterpretation should be the one entitled to interpret the contract. Theyshould be judges and arbitrators. Interpretation without power has animportant influence to powerful interpretation. The object of thecontract interpretation is the intentions of the contracting parties. Inrelation to abstract norm of civil law, the nature of the interpretationsfrom a judge or an arbitrator in the judicial practice is a matter offact. According to the purpose of contract interpretation focusing onexternal or inner meaning, there are three contract interpretationtheories. They are meaningism, expressionism and dual theory. This paperdiscusses from the definition of the "purpose". This paper demonstratesthat the purpose of contract interpretation is a multi-level explanationunity. Its unified basis and its fundamental purpose are to "explore thereal intent of the parties". By interpretation of the contract, we maysafeguard the interests of the parties to the contract and to achieve abalance between the parties to the contract with the State and theinterests of the community.After the analysis of the basic issues above, this paper makes comments on the literal interpretation rules, the overall interpretationrules, and the interpretation rules for purpose, the customary rules ofinterpretation, and the fair rules of interpretation. Furthermore, thispaper analyzes their hierarchical relationships in application from themethod level.Through discussing the relevant issues on contract interpretation,understanding on this is clarified. Based on this and the relevantprovisions relating to contract interpretation in Chinese Contract Law,this paper puts forward its own ideas about the construction on Chinesecontract interpretation system...