ContractsInterpretation of Contracts
Section § 1635
This law states that all contracts, no matter who they are between, should be understood using the same rules unless a different rule is specified elsewhere in this legal code.
Section § 1636
This law states that when interpreting a contract, it's important to understand and honor what both parties intended when they first made the agreement, as long as that intention can be figured out and is legal.
Section § 1637
This law says that when it's not clear what both parties in a contract intended, we should use certain rules from this chapter to figure it out.
Section § 1638
This law states that when interpreting a contract, you should go by the actual words used, as long as those words are clear, straightforward, and don't lead to anything ridiculous or unreasonable.
Section § 1639
This law states that if a contract is written down, the goal is to figure out what the parties meant just by looking at the written contract itself, as far as you can, while also considering any other related rules in the same legal section.
Section § 1640
This law says that if a written contract doesn't reflect what the parties actually intended because of fraud, a mistake, or an accident, their true intentions should be followed, and the incorrect parts of the contract should be ignored.
Section § 1641
This law states that when looking at a contract, you should consider the entire document as a whole. Try to make sense of every part, and see how each section can help explain the others.
Section § 1642
If you have multiple contracts dealing with the same topics, involving the same people, and they were created as part of one big agreement, they should be viewed and interpreted as a single unit.
Section § 1643
Section § 1644
When interpreting a contract, you should understand the words in the way most people would, using their everyday meaning. However, if the people involved used the words in a specific or technical way, or if there's a common industry practice giving them a special meaning, then that particular meaning should be used.
Section § 1645
This law section means that if a law uses technical terms specific to a profession or business, those terms should be understood as they are normally used by people in that field, unless the law clearly means something different.
Section § 1646
This law explains that a contract should be understood based on the laws and common practices of the location where the contract will be carried out. If there's no specific place mentioned for the performance, then the contract should be interpreted according to the laws and practices where it was created.
Section § 1646.5
This California law says that when dealing with contracts worth $250,000 or more, the parties involved can choose to have California law govern their rights and responsibilities, even if their contract seems unrelated to California. However, this doesn't apply to contracts for labor or personal services, deals mainly for personal, family, or household purposes, or certain exceptions mentioned in the Commercial Code. The law also applies to agreements made before it was enacted, meaning old contracts that chose California law are still valid and enforceable as if this rule was always in place.
Section § 1647
This law says that when figuring out what a contract means, you can look at the situation in which it was created and the main topic it covers.
Section § 1648
This law says that no matter how wide-ranging a contract's wording is, it only covers what the involved parties clearly meant to agree on.
Section § 1649
If a promise is unclear, it should be understood in the way the person making the promise thought the other person understood it at the time.
Section § 1650
If a contract has specific clauses, they must follow the overall purpose or main goal of the contract. Basically, the big picture matters more than the small details.
Section § 1651
Section § 1652
This law says that if parts of a contract seem to contradict each other, you should try to interpret them in a way that makes sense and stays true to the overall purpose of the contract, even if that means giving a lesser role to the conflicting parts.
Section § 1653
If a contract has words that don’t fit with what the contract is about or don’t match what the parties intended, those words should be ignored.
Section § 1654
Section § 1655
This law says that if a contract doesn't explicitly state otherwise, certain terms that make the contract fair or consistent with common practices are automatically assumed to be included.
Section § 1656
This law says that if a contract doesn't mention certain details that are usually part of such agreements, those details are still considered included unless the contract specifically lists some and not others, in which case those not listed are left out.
Section § 1656.1
This law section discusses how retailers can add sales tax to the price of goods sold to customers. Whether sales tax is included depends on the sales agreement. Customers are usually deemed to have agreed to the tax if it's stated in the sales agreement, shown on the receipt, or if there’s a visible notice in the store or advertisement. If prices include tax, retailers must clearly post this. The State Board of Equalization provides tax reimbursement tables to help retailers calculate taxes accurately. The assumptions about agreeing to pay sales tax can be contested.
Section § 1656.5
This law explains when a company renting out heavy equipment can add a fee for estimated personal property tax to a rental contract. It's allowed if the rental agreement clearly states this fee, it is listed separately in the contract, and it doesn't exceed 0.75% of the rental cost. The law assumes both parties agree to this fee under these conditions, but this assumption can be challenged. Additionally, 'qualified heavy equipment renter' and 'rental price' have specific meanings within this context.
Section § 1657
This law explains that if a deadline is not set for completing an action required by a contract, then the action should happen within a reasonable timeframe. However, if the action can be done immediately, like paying money once the exact amount is known, it should be done right away.
Section § 1657.1
When a contract that you didn't have a chance to negotiate, like a standard form contract, says you need to do something by a certain time, that timeframe must be fair and reasonable.
Section § 1659
Section § 1660
If multiple people make a promise together, it's generally assumed that each person is both collectively and individually responsible for fulfilling that promise.
Section § 1661
A contract is 'executed' when all its terms and obligations have been completely fulfilled. If anything is still left to be done, it's called 'executory'.
Section § 1662
This law states that when you buy or sell real estate in California, there's an implied agreement on how to handle unexpected damage or seizure of the property. If the property is damaged or taken before the buyer gets it, and it's not the buyer's fault, the seller can't enforce the sale, and the buyer can get back any money paid. But if the buyer already has the property or legal ownership, they still have to pay even if the property gets damaged or seized through no fault of the seller.
Section § 1663
This law section explains what happens to contracts or financial instruments when currencies change, particularly focusing on the euro. If a contract originally used a currency replaced by the euro, the euro can be used as a fair substitute. Using the euro won't cancel or change the terms of any financial agreements unless specifically agreed by the parties involved. This rule applies even if other currency changes occur. The law ensures that financial obligations remain valid and enforceable despite currency changes.