Deciding the Correct Interpretation when a Contract contains Incorrect Formulations

In such cases Article 447 of the RA Civil Code provides:

“In interpreting the conditions of a contract, the court shall rely on the literal meaning of the words and expressions contained therein. In case of vagueness of the literal meaning of a condition of a contract, it shall be defined through juxtaposing the other conditions of the contract and the overall meaning of the contract.”

Part 2 of the same Article provides:

“Where the rules contained in point 1 of this Article do not provide an opportunity to determine the content of the contract, the real common will of the parties should be clarified given the objective of the contract. Moreover, all relevant circumstances shall be considered, including negotiations and correspondence preceding the contract, the practice established in the interrelations between parties, customary business practices, further behaviour of parties.”

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