Law 5110 Study Guide - Quiz Guide: Uberrima Fides, Fiduciary, Efficiency Ratio
Document Summary
Subjective interpretation gives precedence over what the real intention of the parties was, whereas objective interpretation only looks at the literal meaning. The civil law jurisdictions try to find a compromise between both approaches by trying to search for the common intention of the parties while paying attention to reasonableness (fr: art. In english law this is also the case (investors compensation scheme v. Interpretation can be easy, for example if both parties use the same word in the same wrong way. In that case, this common mistake prevails over the literal meaning (see the german case. Haakj ringsk d, which means whale meat but was meant as shark meat). However, it is more difficult if ambiguous clauses have to be interpreted. In that case, different factors play a role as reflected by art. An example for the application of these factors is the german case b rgschaft auf erstes anfordern ( first demand guarantee").
