Opinion ID: 2318744
Heading Depth: 1
Heading Rank: 5

Heading: Standard of Review-Interpretation of Contracts

Text: Maryland has long adhered to the law of objective interpretation of contracts. Auction & Estate Representatives v. Ashton, 354 Md. 333, 340, 731 A.2d 441, 444 (1999); Calomiris v. Woods, 353 Md. 425, 435, 727 A.2d 358, 363, (1999); Adloo v. H.T. Brown Real Estate, Inc., 344 Md. 254, 266, 686 A.2d 298, 304 (1996); State v. Attman/Glazer P.B. Co., 323 Md. 592, 604, 594 A.2d 138, 144 (1991). The clear and unambiguous language of an agreement will not give way to what a party thought the agreement meant or was intended to mean. Auction & Estate Representatives, 354 Md. at 341, 731 A.2d at 445; Adloo, 344 Md. at 266, 686 A.2d at 304, GMAC v. Daniels, 303 Md. 254, 261, 492 A.2d 1306, 1310 (1985); Board of Trustees v. Sherman, 280 Md. 373, 380, 373 A.2d 626, 629 (1977). Further, [i]n the interpretation of written contracts it is the duty of courts to ascertain, if possible, the intention of the parties, as manifested by the terms of the instrument. If the intention ... is plainly manifest upon the face of the instrument there is no room for interpretation.... Maryland Coal Co. v. Cumberland & Pennsylvania Railroad Co., 41 Md. 343, 352 (1875) If an ambiguity arises, however, the court construing an agreement must determine from the language of the agreement itself what a reasonable person in the position of the parties would have meant at the time it was effectuated. Daniels, 303 Md. at 261, 492 A.2d at 1310. An ambiguity arises when the language of the contract is susceptible of more than one meaning to a reasonably prudent person. Auction & Estate Representatives, 354 Md. at 340, 731 A.2d at 444; Heat & Power Corp. v. Air Prods. & Chems., Inc., 320 Md. 584, 596, 578 A.2d 1202, 1208 (1990) (citing Truck Ins. Exch. v. Marks Rentals, Inc., 288 Md. 428, 433, 418 A.2d 1187, 1190 (1980)). If the contract is ambiguous, the court must consider any extrinsic evidence which sheds light on the intentions of the parties at the time of the execution of the contract. Heat & Power Corp., 320 Md. at 596-97, 578 A.2d at 1208.