The Role of the Principle of Generality in Interpretation of Contracts

Interpretation of contract means elimination of existing ambiguity and conflicts in the contract to achieve the intention of the contractors.One of the methods used in interpretation is the use of principles of literality, such as the principle of generality. According to this principle, as one of the examples of the appearance principle, in case of doubt concerning the scope of the contract, the general words contained in it, in the absence of a restrictor (a matter that restricts the scope of evidence), should be construed in its general meaning, unless the party claiming restriction is able to prove it. Of course, a restrictor can be either verbal or non-verbal. General practices, or procedures established between the parties or specific commercial custom may be considered as non-verbal restrictor and prevent the interpretation of general words to their generality. But in the normal situation, the principle governing the interpretation of the general words of the contract, is that of lack of restriction or the principle of generality. This is deemed the way to establish customary appearance (the meaning that conventionally comes to mind) and to discern the will of the parties.