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Interpretation of Contracts
Interpretation of Contracts
Is the act of making intelligible that was not before understood, ambiguous, or not obvious.
The intention of the parties always prevails over the words that appear in the instrument of a contract.
(Art. 1370)
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.
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.
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.
Article 1375
Words that may have different significations shall be understood in that which is most in keeping with
the nature and object of the contract.
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.
Article 1377
The interpretation of obscure words or stipulations in a contract shall not favor the party who caused the
obscurity.
Article 1378
When it is absolutely impossible to settle doubts by the rules established in the preceding articles, and te
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.
If 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.