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) Caveat emptor
D) The most reasonable interpretation of the terms
E) The equitable remedy of rectification

Question

Quizplus · Accepted Answer

The most reasonable interpretation of the terms is usually applied by the court to settle matters when there is a misunderstanding as to the meaning of a term of the contract. This approach aims to find a fair and practical interpretation of the contract's terms based on the context and the parties' intentions.

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