Data Driven Contract Interpretation: Discovering “Plain Meaning” Through Quantitative Methods

Stephen C. Mouritsen, Contract Interpretation with Corpus Linguistics (Nov. 4, 2017), available at SSRN. Omri Ben-Shahar Interpretation of contractual text may be the most important task courts perform in contract disputes. It is also the least predictable. Courts fall back on archaic canons of interpretation and employ poorly defined and spongy concepts for eliciting the meaning of words. They sometimes use textual approaches, and other times admit extrinsic evidence to understand the context. As a result, contract interpretation is erratic, and the resolution of contract disputes becomes complex and costly. Despite murmurs of judicial skepticism and mountains of academic criticism, the most commonly used criterion in contract interpretation is the “Plain Meaning Rule”—the idea that if the language is clear and unambiguous courts should not consider any extrinsic evidence. But how to tell if a word is susceptible to a single plain meaning? Is it enough…

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