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Thursday, 6 October 2011

Contract

Interpretation of -- Contract is interpreted according to its purpose -- Purpose of a contract is the interests, objectives, values, policy that the contract is designed to actualize -- It comprises joint intent of the parties -- Every such contract expresses the autonomy of the contractual parties’ private will -- It creates reasonable, legally protected expectations between the parties and reliance on its results – Consistent with the character of purposive interpretation, the court is required to determine the ultimate purpose of a contract primarily by the joint intent of the parties at the time the contract so formed – It is not the intent of a single party; it is the joint intent of both parties and the joint intent of the parties is to be discovered from the entirety of the contract and the circumstances surrounding its formation. DLF Universal Ltd. & Another v. Director, T.&C. Planning Haryana & Others, 2011(1) L.A.R. 338 (SC).

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