Um digos college department of accounting education

UM Digos College
Department of Accounting Education
Roxas Extension, Digos City
d. The various stipulations of a contract shall be interpreted together,
attributing to the doubtful ones that sense which may result from all of them
takes jointly.
e. If the contract is clear, the judge must interpret and construe it in order to
determine the hidden motive of the contracting parties.
118. The following are the rules for interpreting or construing a contract, except
a. Words which may have different significations shall be understood in that
which is most in keeping with the nature and object of the contract.
b. The usage of custom of the place shall be borne in mind in the interpretation
of the ambiguities of a contract, and shall fill the omissions of stipulations
which are ordinarily established.
c. The interpretation of obscure words or stipulations in a contract shall not
favor the party who caused the obscurity.
d. Whenever the contract provides for payment of penalty in case of breach, it
shall be interpreted liberally in favor of the awarding of penalty.
119. When it is impossible to settle doubts by rules established in the preceding
ACC 311 *Property of UMDC
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numbers, and the doubts refer to incidental circumstances of a gratuitous contract
such as donation or commodatum, what shall be the interpretation of the contract?
120. When it is impossible to settle doubts by the rules established in the
preceding numbers and the doubts refer to incidental circumstances of an onerous
contract such as sale or lease, what shall be the interpretation of the contract?