The following excerpt is from Intermountain Building & Loan Ass'n v. Gallegos, 78 F.2d 972 (9th Cir. 1935):
It is well setttled that in cases where one interpretation of a contract will render it valid, and another construction will compel the conclusion that it is void, the courts will favor the interpretation that will give life, and not death, to the agreement of the parties. The doctrine is simply a corollary to the presumption of validity. In Selby v. Bass, 19 La. 499, 506, the principle was thus stated: "When a party, having two capacities, takes possession of property, and a question arises as to which he holds under, it is a legal presumption, he takes in the capacity the law authorizes. That is, he will do what it is his duty to do. Omnia rite esse acta. 2 Starkie, 673."
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