The contractual intention and its interpretation with a focus on the partial invalidity of the contract

Abstract

The interpretation of both the judicial act and the contract is an essential and much-researched topic of contract law since interpretative questions relating to the contract are raised in almost all cases. The intention is a basic ‘building block’ of contractual agreements, therefore, in case of a legal dispute, revealing the parties’ real intention is indispensable. Nevertheless, there are also cases where the application of certain legal consequences raises the need for interpretation. For instance, when a ground for invalidity concerns only a certain part of the contract, the legislator provides partial invalidity or the invalidity of the contract in its entirety. Regardless of what type of invalidity is declared as a general rule, contractual parties, or in case of debate, the court shall decide about the legal status of the parties’ contract. In the lack of the parties’ expressed declaration, the decision shall be made on the real, interpreted, or ultimately, on the hypothetic contractual intention of the parties.