Final answer:
The legal principle for interpreting contracts according to a reasonable layperson's understanding is the Doctrine of Reasonable Expectations.
Step-by-step explanation:
The legal principle that stipulates contract provisions should be interpreted in a way that a reasonable person, not trained in law, would understand is the Doctrine of Reasonable Expectations. This doctrine emphasizes the importance of interpreting contracts not only through a technical legal lens but also considering the perspective of fairness and common sense that an ordinary person would have.
This is crucial since contracts often have significant impacts on individuals' day-to-day lives, and a purely technical interpretation can sometimes lead to unjust outcomes that defy the original expectations of the non-legally trained parties involved.
The Doctrine of Reasonable Expectations ensures a more equitable and practical approach to contract