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Chapt 5 Outline

The document outlines the interpretation of contracts under Philippine law. It states that the literal meaning of clear contract terms will control, but the parties' intentions can prevail if they differ from the words used. To determine intention, a court will consider the parties' actions during and after the contract. General terms in a contract do not include distinct or different cases not intended by the parties. Ambiguous terms must be interpreted to be effective. All terms should be interpreted together to resolve doubts. Words have the meaning consistent with the contract's nature and purpose. Customs help interpret ambiguities and fill gaps. Unclear words are not interpreted in favor of the party that caused the uncertainty. Doubts about incidental issues in gratuitous contracts

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Anita Noah Melo
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30 views

Chapt 5 Outline

The document outlines the interpretation of contracts under Philippine law. It states that the literal meaning of clear contract terms will control, but the parties' intentions can prevail if they differ from the words used. To determine intention, a court will consider the parties' actions during and after the contract. General terms in a contract do not include distinct or different cases not intended by the parties. Ambiguous terms must be interpreted to be effective. All terms should be interpreted together to resolve doubts. Words have the meaning consistent with the contract's nature and purpose. Customs help interpret ambiguities and fill gaps. Unclear words are not interpreted in favor of the party that caused the uncertainty. Doubts about incidental issues in gratuitous contracts

Uploaded by

Anita Noah Melo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 5 OUTLINE

Interpretation of Contracts
ARTICLE 1370. If the terms of a contract are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over
the former. (1281)
ARTICLE 1371. In order to judge the intention of the contracting parties, their contemporaneous
and subsequent acts shall be principally considered. (1282)

ARTICLE 1372. However general the terms of a contract may be, they shall not be understood to
comprehend things that are distinct and cases that are different from those upon which the parties
intended to agree. (1283)

ARTICLE 1373. If some stipulation of any contract should admit of several meanings, it shall be
understood as bearing that import which is most adequate to render it effectual. (1284)

ARTICLE 1374. The various stipulations of a contract shall be interpreted together, attributing to
the doubtful ones that sense which may result from all of them taken jointly. (1285)

ARTICLE 1375. Words which may have different significations shall be understood in that which is
most in keeping with the nature and object of the contract. (1286)

ARTICLE 1376. The usage or custom of the place shall be borne in mind in the interpretation of the
ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established.
(1287)

ARTICLE 1377. The interpretation of obscure words or stipulations in a contract shall not favor the
party who caused the obscurity. (1288)

ARTICLE 1378. When it is absolutely impossible to settle doubts by the rules established in the
preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the
least transmission of rights and interests shall prevail. If the contract is onerous, the doubt shall be
settled in favor of the greatest reciprocity of interests.

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known
what may have been the intention or will of the parties, the contract shall be null and void. (1289)

ARTICLE 1379. The principles of interpretation stated in Rule 123 of the Rules of Court shall
likewise be observed in the construction of contracts. (n)

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