Which description best describes the factual matrix examined by the courts when interpreting contractual terms?
A) the evidence of the party's subjective intention or negotiations leading up to the contract
B) the background facts known to the parties when the contract was concluded
C) the plain meaning of the words used in the contract document itself
D) the impression of a 'reasonable bystander' of the parties' intentions

Question

Quizplus · Accepted Answer

The factual matrix refers to the background facts known to the parties at the time the contract was concluded, which courts consider to understand the context and purpose of the contract.

Which Description Best Describes the Factual Matrix Examined by the Courts