On The Explanation Rules Of Ambiguities In Standard Form Contract

The format contract or the standard form contract is the product of thedevelopment of marketing economy. In today’s commodities transactions, many of thetransactions are repetitive. The standard form contract, as being popular among trades,doubles improvement in cooperative potency and promotes development ofcommodity economy.However, there are still many problems in the use of standard form contract inpractical exercise. The standard form contract can’t take the interests of the relativeparty of contract into consideration. Because the standard form contract is formulatedin advance by a party, who holds the natural instincts of pursuing their own interests.Therefore, the two parties come up dispute to the clauses of the standard formcontract constantly. It has become a principal premise to solve the ambiguities ofstandard form contract that whether one should take the traditional way or finding anew way to interpret such ambiguities. Although there are related rules to govern theexplanations of the standard form contract in the law of our country, it is not completeon the whole. In view of this, this paper attempts to probe how to govern theexplanations of the standard form contract by combining the explanation ofambiguities in standard form contract with new social phenomenon.Chapter One introduces the basis theory of standard form contract. Firstly, standard form contract has its own names, concepts and characteristics in differentlegal system, countries and areas. Secondly, an investigation of the origin of standardform contract is made to introduce the production background and age feather ofstandard form contract and the situation of its earliest legislation. Lastly, thecomparison between standard form contract and traditional contract gives an analysisof the benefits and drawbacks to the society brought by the former.Chapter Two reveals the problems that caused by standard form contract’schallenge to the explanation rules of traditional contract. Standard form contract is acontract text that is accomplished after the deep consideration of providers. Whenthere appear ambiguities in articles of the contract, it will make the interests over tothe party supplying the standard terms through the explanation rules oriented bypurpose and literary content, which will lead to the interest imbalance of contractingparty. By discussing the explanation rules of ambiguities of traditional contract, thischapter proposes that a new, fair way of explaining the ambiguities should be found towelcome standard form contract’s challenge to the explanation rules of traditionalcontract.Chapter Three is a comparative law research of the explanation rules ofambiguities in standard form contract. By analyzing the specific characteristics ofstandard form contract in explanatory rules, this chapter makes an introduction to thelegislation and theory of explanation rules of ambiguities in standard form contract incontinental legal system countries and Anglo-American law system countries.Chapter Four is a research of the explanation rules of ambiguities in standardform contract which is set by legislative stipulation and judicial interpretation in ourcountry. According to China’s relevant provisions of the “Contract Law”, the formatof contract interpretation should be taken to a special three principles of interpretation:one should be in accordance with the generally understood to be explained; thesecond is a producer for the adverse terms of the interpretation; the third is non formatto the terms and provisions of the format should be inconsistent with the terms of theuse of non-format. Moreover, these special three principles of interpretation areadopted to analyze the case which is mentioned in the introductory part of this paper. Chapter Five offers the personal views on establishing a reasonable pattern ofgoverning the explanations of standard form contract. An analysis of the subjects offormat contract interpretation is firstly made to come up with the viewpoint thatparties are the very subjects of format contract interpretation instead of judges asthemselves. Besides, some problems of limiting the using of unfavorably explainedprinciple are discussed to avoid the appearance of negative value of format contract,by which the standard form contract will express its strengths and overcomes itsdrawbacks in the process of use.