Interpretation of the Contract: Commentary on Order No. 8940 of 2024

The recent Order No. 8940 of April 4, 2024, by the Court of Cassation represents an important reflection on the principles of contract interpretation, with particular attention to the literal meaning of words and the common intention of the parties. This decision provides useful insights for both professionals and citizens facing legal issues related to contracts.

The Literal Meaning of Words and Contract Interpretation

The Court, presided over by M. Mocci and with reporting judge L. Varrone, deemed it fundamental that the interpretation of a contract must take into account the literal meaning of the words used. According to Article 1363 of the Civil Code, it is necessary to analyze the entire negotiation context to fully understand the parties' intent. This approach helps to avoid misunderstandings and ensures that contractual clauses are evaluated coherently and in relation to one another.

Literal meaning of words - Notion - Overall formulation of the negotiation declaration - Plurality of clauses - Connection and comparison - Necessity - Application of further criteria of functional interpretation and in good faith - Necessity - Foundation. In terms of contract interpretation, the common intention of the parties must be sought with regard to the literal meaning of the words, to be verified in light of the entire negotiation context pursuant to Article 1363 of the Civil Code, as well as the subjective interpretation criteria under Articles 1369 and 1366 of the Civil Code, aimed, respectively, at allowing the ascertainment of the meaning of the agreement in coherence with the relative practical reason or concrete cause and at excluding - through behavior characterized by loyalty and safeguarding of the other party's interests - convoluted interpretations leading to a meaning contrary to the interests that the parties intended to protect through the negotiation.

Principles of Good Faith and Consistency in the Negotiation

Another crucial aspect of the Order concerns the application of the principles of good faith and loyalty, as provided for by Articles 1366 and 1369 of the Civil Code. These principles are essential to ensure that contractual interpretations are not only technical but also respectful of the mutual interests of the parties. The Court emphasizes that a convoluted interpretation, which ignores the substance of the agreement, is not only inadequate but can also be harmful to the party who relied on the stipulation.

Conclusions

In conclusion, Order No. 8940 of 2024 offers important clarifications on contract interpretation, highlighting the importance of considering the literal meaning of words and the overall context. The centrality of good faith and the consistency among contractual clauses are fundamental elements to ensure a fair application of the rules and to protect the parties' interests. This ruling fits into a jurisprudential trend aimed at ensuring greater fairness and clarity in contractual relationships, an essential aspect for legal security in an increasingly complex commercial context.

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