Life and business are all about perception. The manner in which language is interpreted shapes viewpoints and outcomes. When it comes to contract language, Houston corporate attorneys delineate between practical and technical interpretations.
Deciphering Contract Language
The technical interpretation of contract language is not the same as the practical interpretation. Technical interpretation is more focused on the nuances of words and expressions. Practical interpretation of contract language centers on how those words are put to use in the real world as opposed to a piece of paper. For instance, should you use an “and” or an “or” in a certain situation? Those two words are different and can create different outcomes.
One’s decision to decipher contract language literally or through a practical lens determines how the document is used. As an example, the literal interpretation of a contract’s waiver of notice of default indicates there is no need to notify parties when they breach a contract that a breach has occurred.
The moral of the story is the manner in which contract concepts are communicated and interpreted determines ensuing productivity, risk, and even the outcomes of legal disputes.
Technical or Practical? That is the Question
If you were to present a contract to an engineer for analysis, he or she would likely provide a technical explanation of its language. Alternatively, construction specialists and those with “boots on the ground” would seek a more practical explanation. Those in between these extremes tend to take a mixed approach, blending both practical and technical explanations together for a unified whole.
Proper communication and interpretation of language helps prevent and also resolve contract disputes. When your business drafts a contract or is presented with one for potential signature, it is best to bring it to a Houston corporate attorney for review. An experienced attorney will analyze the language of the contract from the lens of both a pragmatist and a technician to identify all potential points of conflict prior to signature.
The legal analysis of a proposed contract from both a technical and practical perspective has the potential to prevent disputes and ensuing lawsuits. If any amendments to the language are necessary, your corporate attorney will rewrite those segments of the contract and present them to opposing counsel for review.
Words and Language Are Inherently Ambiguous
A word might mean one thing to one individual and something completely different to another. Word meaning hinges on both the reader’s intellect and the context in which it is used. Meaning is ultimately in the eye of the reader, meaning there is considerable potential for ambiguity and ensuing disagreement. As a result, the meaning of words and phrases used in contracts is often unclear.
Choose the wrong corporate attorney to draft and revise contracts and your legal fate will ultimately end up in the hands of a judge. Keep in mind that judges have the liberty to provide both practical and technical interpretations of contract language.
Learn More During a Consultation With Our Houston Corporate Attorneys
The language of your business contracts has the potential to make or break your company. This is not a time to take chances. Contact our Houston corporate attorneys today to schedule a consultation for contract review and more.