An exemption clause is construed by looking at the contract as a whole, including the exemption clause, and interpreting it according to the natural and ordinary meaning of the words. This is called the

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BlackTom AI · Accepted Answer

The question asks about the method used to interpret an exemption clause by looking at the contract as a whole and interpreting it according to the natural and ordinary meaning of the words.

Since the provided data shows the answer as 'a. Reasonable person test', we can analyze the concept in that light.

- Option evaluation context: Although the answer options list is empty in the data, we can still discuss what the stated approach implies. Interpreting a contract by the natural and ordinary meaning of its words generally reflects an objective, outward-facing standard. This aligns with how a reasonable person would understand the terms, rather than relying on subjective or hidden intentions.

- Why the 'reasonable person' framing fits: The phrase 'natural and ordinary meaning of the words' mirrors the common-law principle of giving words their plain meaning as understood by an ordinary reader. The 'reasonable person' standard is often invoked to model that ordinary reader’s perspective, avoiding over-complication from technical jargon or mythic corporate intent. Therefore, describing this as the 'Reasonable person test' captures the essence of an objective interpretation of contract language.

- Potential misconceptions if a different label were used: If one were to label this approach as 'the literal rule' alone, one might overemphasize exact wording without regard to overall contract context. If one chose 'contra proferentem', that would imply interpreting ambiguity against the drafter, which is a rule used in some contexts but not specifically about reading the contract as a whole for ordinary meaning. If 'objective interpretation' or 'textual approach' were options, they would also convey a similar concept, but the phrasing 'reasonable person test' explicitly ties to how a typical reader would understand the language.

- Contextual note: Interpreting the contract as a whole and focusing on ordinary meaning is a common approach in contract interpretation to ensure the clause is read in light of the entire agreement, not in isolation. This helps prevent skewed readings based on isolated terms.

If there were other options, we would compare them to this standard by asking: does the option emphasize an ordinary reader's understanding, does it consider the contract in totality, and does it avoid expanding or constraining meanings beyond what a reasonable person would infer from the ordinary words? In the absence of explicit alternatives in the data, the alignment with 'Reasonable person test' remains a coherent explanation for the described method.

An exemption clause is construed by looking at the contract as a whole, including the exemption clause, and interpreting it according to the natural and ordinary meaning of the words. This is called the

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Which intepretation rule states that the exemption clause is intended to cover only the matters contained in the contract.

Which intepretation rule states that the exemption clause is intended to cover only the matters contained in the contract.