Final answer:
The rules of contract interpretation give effect to the parties' intent as expressed in their contract, not to individual parties' claims of intent or to what parties now agree they intended.
Step-by-step explanation:
When a contract contains unclear terms and a dispute arises, the rules of contract interpretation aim to give effect to the parties' intent as expressed in their contract. The essence of contract law is to honor the mutual agreement and understanding of the parties at the time the contract was formed. Courts typically look for objective evidence of what the parties communicated through their contract language rather than subjective statements of intent by either party.
One of the central tenets of contract law is the concept that contractual rights are based on property rights. This allows individuals to make agreements with others about the use of their property and seek legal recourse if necessary. Effective contracts should be clear and understandable to avoid confusion and potential legal disputes.
It's important for written contracts to be concise and accessible so that parties fully comprehend what they are agreeing to, reducing the risk of disagreements over unclear contract terms.