Which of the Following Is NOT a Rule for the Interpretation

question 44

Multiple Choice

Which of the following is NOT a rule for the interpretation of contracts?

• A)The court will apply an objective test to the determination of the intention of the parties.
• B)The court may not consider dealings between the parties prior to entering into the contract.
• C)The court will read the words in a contract in the way that they are understood by people in business concerned.
• D)The court may use the dictionary definition of a word which appears in a contract.
• E)The court may rely on what the contract itself says that a word in it means.

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Definitions:

Yields

Yields refer to the earnings generated and realized on an investment over a particular period, expressed as a percentage based on the investment’s cost, its current market value, or its face value.

Debentures

A type of debt instrument not secured by physical assets or collateral but based on the creditworthiness and reputation of the issuer.

Mortgage Bonds

Bonds secured by the pledge of specific assets, usually real estate properties, as collateral for the debt.

Yield to Maturity

The total return expected on a bond if held until its maturity date.