When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?
A)The court will find that there is no contract because there is no meeting of the minds.
B)Non est factum
C)The most reasonable interpretation of the terms
D)The equitable remedy of rectification
E)Caveat emptor

Question

Quizplus · Accepted Answer

When there is a misunderstanding as to the meaning of a term of the contract, the court will usually apply the most reasonable interpretation of the terms. This means that the court will analyze the contract in its entirety and try to determine what the parties intended when they signed the agreement. The court will also take into consideration any relevant evidence, such as the parties' prior dealings or industry custom, to help interpret the terms.

When Two Parties Are Involved in a Misunderstanding as to the Meaning