Contract formation confirms the parties understand and agree to all the essential terms. When that understanding and agreement fades, how do you find it again? How do you confirm you’ve found the best meaning?
When the contract language is unambiguous, it must be given its plain and ordinary meaning and the court may not look to extrinsic evidence to interpret its provisions. (Ambiguous language is discussed in another post.)
Plain and ordinary meaning comes from to the face of the language itself, without technical or specialized interpretation. This assumes the meaning is unambiguous, which is discussed in another post. When the meaning is plain, the parties, court, or arbitrator may look to other documents and/or testimony to confirm they have found the best meaning. The process looks like this:
Here are some examples where outside documentation confirmed the plain meaning:
Government’s Negligent Estimate a Trick?
The Government’s negligent estimate failed to provide the “most current information available.”
Prime Contractor Had No Duty to Help Surety Investigate Sub’s Default
We all know what happens when we “ASS-U-ME” something. So, we should all carefully avoid assuming things unnecessarily.
It’s Good to Be the King
Mel Brooks in the movie History of the World: Part I (1981) said it best – “It’s good to be the King.” It’s also true when asserting claims against the State or an arm or agent of the State.
Smoke Without Fire: Damage from Concrete Dust Covered by Insurance
You’ve heard, “where there’s smoke, there’s fire.” In this instance, the smoke was concrete dust that damaged a warehouse full of aircraft […]
Changes Made After Substantial Completion Did Not Extend Overall Project Time
Contractors take heed – a time extension may be issued after substantial completion for specific work and the Government can still assess […]
One-Sided Construction Arbitration Clause Valid in Virginia
When it’s time to butt heads, know how the local turf (court) will interpret the clause.
Manage the Risk of Construction Changes
Almost any problem on a construction project can be traced to one of two things: changes or delays (even delays are really just changes). As in life, embrace and manage the change don’t run from it.
Want Your Profit? Prove a Constructive Change, Not a Suspension of Work.
What’s the Difference Between a Suspension of Work and a Constructive Change? For federal contractors, there are two main differences: . . .
No Special Defenses to Arbitration Agreements
Arbitration agreements, whether they are separate or part of a larger agreement, are contracts – an enforceable set of promises between parties. […]
