How does the court interpret a contract based on the intent of the parties?

California, United States of America


The following excerpt is from Jibe Audio LLC v. Beats Elecs., LLC, B267633 (Cal. App. 2016):

First, the court provisionally receives all credible evidence concerning the parties' intentions to determine whether the contract language is reasonably susceptible to the interpretation urged by the parties. If it is reasonably susceptible to the interpretation urged by the parties, the evidence is then admitted to aid in interpreting the contract. (Wolf v. Superior Court, supra, 114 Cal.App.4th at p. 1351.)

Here, the trial court received extrinsic evidence regarding the parties' intent.

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