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INTRODUCTION
Interpretation is the method by which the sense or meaning of the word or
provision is understood.
The question of interpretation can arise only if two or more possible
constructions are sought to be placed on a provision - one party suggesting
one construction and the other, a different one.
It is, therefore, in the best interest of all parties to a contract that they
express their intention without ambiguity.
However, the meaning of a contract or some of its terms is often obscure.
More often than not this becomes a source of dispute between the parties.
In order to settle such a dispute, the disputed term or provision has to be
interpreted or given a proper meaning.
Section of
The Indian Evidence Act
The Indian Contract Act
Art No.
S. 91 to 99
S. 115
4.25
4.22
Clause : 62, 63
4.9
WHAT IS INTERPRETATION?
The dictionary meaning of the word 'interpretation' is "...expound the
meaning of" Black's Law Dictionary gives the meaning of interpretation as:
"The art or process of discovering and ascertaining the meaning of a
Statue, will, contract or other written document." But this alone does not
help.
So the interpretation of the contract almost always involves ascertaining
the intention of parties to the contract -as conveyed by the words set out
in writing or by the spoken words the parties used in case of an oral
contract.
CONSTRUCTION
Cooley explained the difference between them (Constitutional
Limitations,) by saying that interpretation" is the art of finding out the,
true sense of any form of words, that is, the sense which their author
intended to convey", while construction is:
"The drawing of conclusions, representing subjects that lie beyond the
direct expression of the text, from elements known from and given in the
text; conclusions which are in the spirit, though not within the letter of
the text".
It is thus clear that in the strict usage, the term "construction" is wider in
scope than interpretation.
While the latter is concerned with ascertaining the sense and meaning of
the subject matter, the former may also be directed to explaining the
legal effects and consequences of the document in question.
KINDS OF INTERPRETATION
The interpretation is of various kinds and includes:
1. Authentic interpretation: It is given by the legislator and is obligatory
on the Courts. For example, each Statute gives an interpretation clause,
which defines the meaning of certain words occurring frequently in the
other Sections.
2. "Customary" or "Usual" interpretation: It is that which arises from
successive or concurrent decisions of the Courts on the same subjectmatter, having regard to the spirit of the law, jurisprudence, usages and
equality.
3. "Close", "Strict" or "Literal" interpretation: It is adopted when, for just
reasons, one is induced to take the words in their narrowest meaning.
4. "Extensive" or "Liberal" interpretation: It adopts a more comprehensive
significance of the word.
5. Extravagant: Beyond the true one