Interpretation of contact terms during business litigation

On Behalf of | May 2, 2022 | Business Disputes |

When disputes arise between two or more parties involved in a business relationship, the process of resolving the matter at hand might not always be as simple as sitting down and negotiating. In some cases, business disputes can be complex matters that might leave a company in Pennsylvania preparing to protect its interests through business litigation. With contract disputes, those preparing for legal proceedings might find it helpful to know the approaches the court might take when interpreting the terms of the contract, as this could have a significant influence on the outcome of the situation. 

Contract interpretation 

There are various approaches a court might take in interpreting the terms of a business contract. One such approach could involve interpreting provisions within the contract by the plain meaning of its terms, provided the contract does not contain language that is ambiguous in nature. The court may also seek to apply the objective standard, in which terms may be interpreted the same way any reasonable person might view them. 

A court may also use unique approaches to the evaluation of contract terms that best fit the situation at hand. This could involve giving more weight to certain aspects of the contract, if necessary, such as express or implied terms. The court may also seek to evaluate the purpose of the contract and the context of its terms and provisions when addressing disputes of a similar nature. 

Preparing for legal proceedings 

While the terms of a contract might be subject to interpretation, initiating the business litigation process without knowing how the court may approach the process might not always be preferable. Those who wish to seek insight on what to expect from such a process could consider retaining the services of an attorney in Pennsylvania for insight in preparing for what comes next. An attorney can examine the situation a client is facing, along with the contract, and help create a strategy with which to protect his or her business interests during subsequent court proceedings.