It is not possible to prepare for all kinds of future eventualities. If market conditions change for a company, existing agreements can become unprofitable. The parties will consider the existing provisions differently. Do they offer a solution to changing circumstances? A conflict of interpretation over a treaty often proceeds as follows. A party refers to an obligation that may or may not be included in the literal text of the agreement. The reasoning is as follows: „Since the text of the treaty creates an obligation, you are obliged“ or „Since the text of the treaty does not create an obligation, I am not obliged to do so“. That is the literal interpretation of the treaty. The other party relies on the intent of the provision and agreement and how the parties deal with each other. The reasoning is: „Although the agreement cannot address this situation in so many words, it intended to cover this situation.“ Or vice versa: „The provision is not designed for this situation.
It should not be interpreted like that. „This is the statement based on the intentions of the parties. Then, the interpretation of contracts between professional parties. Interpretation is often guided by the text of the provision in conjunction with the other provisions of the agreement. In the Netherlands, the courts have strongly rejected the probation rule, even in a commercial environment. This means that the parties are free to argue and provide evidence to prove that a different interpretation of the literal interpretation of a particular contractual term is more consistent with the parties` intentions. This is the case even when the contract in question contains a „global contractual clause“. If your business is located in an English-speaking country such as the United Kingdom, the United States, Australia, Canada, New Zealand or Singapore, it will probably be a shock for you. In common law countries where the parties have entered into a written contract, they generally cannot derogate from the text of the contract, for example.
B if it turns out that the written contract does not accurately reflect an agreement or insurance entered into by the parties during the negotiation of the contract. This is what lawyers call the „probation rule.“ Under Dutch contract law, entire contractual clauses are often contained in contracts to anchor or complement the probation rule: cooperation between people is the driving force behind our progress. . . .