Source: https://blog.ceb.com/2016/03/04/draft-agreements-with-contract-construction-principles-in-mind/?shared=email&msg=fail
Timestamp: 2020-05-29 23:48:22
Document Index: 324559256

Matched Legal Cases: ['§1641', '§1858', '§1643', '§1646', '§1654', '§1650', '§1859']

Draft Agreements with Contract Construction Principles in Mind – CEBblog™
Whenever possible, courts will interpret a contract to (1) give meaning to all its provisions (CC §1641; CCP §1858) and (2) be lawful, operative, definite, reasonable, and capable of being given effect (CC §1643).
A contract is construed according to the law of the place where it’s to be performed or, if that place isn’t indicated, where it was made (except that the parties can choose to have California law apply for many contracts involving more than $250,000). CC §§1646–1646.5.
Uncertainties are construed against the party that caused the uncertainty (usually the drafting party). CC §1654.
Particular provisions control general provisions. CC §1650; CCP §1859.
A contract subject to the Statute of Frauds isn’t valid if an essential term is missing, and parol evidence may not be used to provide that essential element. On the other hand, parol evidence may be used to clarify an ambiguity regarding the essential term.
Once you know and understand these principles, you can draft contracts that will ultimately be construed in your client’s favor. And don’t forget that there are specific provisions you can include to alter these basic principles.
Get specific drafting guidance in CEB’s Drafting Business Contracts: Principles, Techniques and Forms. And for details on the statutory rules of contract interpretation, turn to CEB’s California Law of Contracts, chap 5.
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