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The Historical Change and Development of the Contract Interpretation System in the Common Law |
LU Zhi-qiang |
Law School of Guizhou Minzu University, Guiyang, Guizhou, 550025 |
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Abstract The contract interpretation of the textualism model of the common law originated in the prevalence of classical contract formalism. This model is based on the principle of freedom of contract and the assumption of complete contract, and it rejects evidence outside the contract text. However, with the change of society, the disadvantages of the contract interpretation system under the traditional textualism model are becoming increasingly apparent. In contrast, the contextualism interpretation model has gradually developed into the mainstream model of the contract interpretation system of modern common law. The changes in the semantics and usage of core terms related to contract interpretation reflect the above-mentioned evolution process. Many important legal documents of Anglo-American contract law have provisions for the contextualism contract interpretation system. The contextualism contract interpretation system is characterized with the judge’s extensive use of external evidence such as transaction process, fulfillment of contract, and industrial practice to interpret the contract text. It helps to oppose the formalism in legal interpretation and avoid the rigidity of legal provisions. But this system increases litigation cost, is unfair to the third party, and undermines the stability of law. Under the constraints of various rules of the contract law, the contextualism contract interpretation system is constantly improved by reasonably restricting the scope of the contract context and strictly following the fair and reasonable interpretation mechanism.
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Received: 16 July 2019
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