Explore The Basis Of Contract Interpretation

Contract is a very important legal relationship which reflect the intention of parties of assuring the rights and obligations of themselves. As the core of private law, contract law plays an important role both in formation stage and performance of the contract under the modern society and economical system. However, due to various reasons, different understandings often rais between parties which need the judge's final interpretaition by all kinds of rules regulated by law.In the field of contract interpretation, exercise the discretion by judge properly is the guaranty of achieving the goal of contract interpretion system, as well as the main way of put the principle of contract interpretaiton into practice. In judicial practice, due to the defects of the contract law and inadequate understanding of the principle and basis of contract interpretation, judge prone to choose the rules of interpretation randomly. Moreover, the inadequte knowledge of the varies important bases of contract interpretion by judge lead to the consequences that many results of interpretion lack the judicial value because they can neither match the main stream of the social values nor realize the true intention of parties. To address the practice of those problems and help to improve the interpretation system, the paper illuminates the basic relationship between law and other social values as a whole, as well as the profund effect of those valus as bases for contract interpretation and the applying of interpretation rules.The first chapter introduces the basic theory of interpretion of contracts, such as the subject, object, characteristic, principal and rules of it and those introduces constitute a basic theoretical groundwork of the following discussion of the basis of interpretation of contracts and the absorbable relationship between those bases and rules of interpretation.Chapteâ…¡,â…¢andâ…£discuss the bases of contract interpretation respectively such as economy, policy, morality ,custom and otheres. In judicial practice, due to the defects of contract law and the lack of necessary study of basis about interpretation of contracts by judge, the understanding of interpretation against contract often focuse on the technical rules. This paper keep its eyes on the relationship between the law and those important bases which is used as a foundation theory to reveal the profound effect of those bases both in the legal side and aspect of fact reorganization during the process of interpretation of contracts. Chapterâ…¤of this paper focuses on the key principles of contracts law both in civil law system and common law system. The key principles of contract law present the basic universal ethical principle orientation which also unavoidably to be the guidelines of value of the interpretation of contracts. Through the comparison of the most important two principles exist in the two law systems in the aspects of their different effects and ways of working during the process of interpretation of contracts, the paper tries to show the significant role of the two principles work as the institutional bases for contract interpretation.Chapterâ…¥is mainly on the functional localization of those bases and their absorbable relationship with rules of interpretation of contracts. The field of interpretation of contract is of very prominent practicalness which need the scientfic ways to divide those bases from different environment related to contract interpretation and a reasonable summary for the absorbable relationship among the bases and rules in order to give some helpful suggestions for the selection of rules and bases which need to be seriously considered during the work of interpretation of contracts.Chapterâ…¦discusses the problems need to be solved in current system of contract interpretation. Althoug the system of contract interpretation has had been established, lots of problems there should be discussed due to the imperfect law system and nonstandard discretion of judge. In this chapter, problems raises from legislation, justice, discretion and judge occupational attainments are analyzed and corresponding solutions are given for the purpose of providing some helpful and constructive suggestions to improve the system of contract interpretation.