The obligation of contract is an obligation created and determined by
the will of the parties. Herein is the characteristic difference of
contract from all other branches of law. The business of the law,
therefore, is to give effect so far as possible to the intention of the
parties, and all the rules for interpreting contracts go back to this
fundamental principle and are controlled by it. Every one knows that its
application is not always obvious. Parties often express themselves
obscurely; still oftener they leave large parts of their intention
unexpressed, or (which for the law is the same thing) have not formed
any intention at all as to what is to be done in certain events. But
even where the law has to fill up gaps by judicial conjecture, the
guiding principle still is, or ought to be, the consideration of what
either party has given the other reasonable cause to expect of him. The
court aims not at imposing terms on the parties, but at fixing the terms
left blank as the parties would or reasonably might have fixed them if
all the possibilities had been clearly before their minds. For this
purpose resort must be had to various tests: the court may look to the
analogy of what the parties have expressly provided in case of other
specified events, to the constant or general usage of persons engaged in
like business, and, at need, ultimately to the court's own sense of what
is just and expedient. All auxiliary rules of this kind are subject to
the actual will of the parties, and are applied only for want of
sufficient declaration of it by the parties themselves. A rule which can
take effect against the judicially known will of the parties is not a
rule of construction or interpretation, but a positive rule of law.
However artificial some rules of construction may seem, this test will
always hold. In modern times the courts have avoided laying down new
rules of construction, preferring to keep a free hand and deal with each
case on its merits as a whole. It should be observed that the fulfilment
of a contract may create a relation between the parties which, once
established, is governed by fixed rules of law not variable by the
preceding agreement. Marriage is the most conspicuous example of this,
and perhaps the only complete one in our modern law.
Evidence.
Public-domain text, read in full here on John Shaqi.
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