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The Law and Economics of Contract Interpretation
- Article from:
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Texas Law Review
- Article date:
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May 1, 2005
- Author:
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Copyright informationCopyright University of Texas, Austin, School of Law Publications, Inc. May 2005. Provided by ProQuest LLC. (Hide copyright information)
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Contract interpretation is an understudied topic in the economic analysis of contract law. This Article combines simple formal analysis of the tradeoffs involved in interpretation with applications to the principal doctrines of contract interpretation, including the "four corners " rule, mutual m
istake, contra proferentum, and what I call the (informal but very important) rule of "extrinsic nonevidence." Gap filling is distinguished, and the relativity of interpretive doctrines to the interpretive medium-jurors, arbitrators, and judges in different kinds of judicial systems-is emphasized.
I. Introduction
There is now a large economic literature on contracts and contract law, but the ...
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