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

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BlackTom AI · Accepted Answer

The question asks: Which interpretation rule states that the exemption clause is intended to cover only the matters contained in the contract.

First, I would note that the provided data includes the correct answer indicator as 'c. Four corners rule', but there are no answer options listed to analyze individually. Consequently, I will focus on explaining the relevant rule and why it aligns with the prompt.

Explanation of the concept: The 'four corners rule' (also known as the four corners approach) holds that, when interpreting the terms of a contract, a court should primarily look at the contract's own language within the four corners of the document to determine the parties' intentions, without importing external evidence about external negotiations or terms not stated in the contract. In this sense, the exemption clause would be interpreted based on the actual wording and scope contained within the contract itself, limiting its reach to the matters expressly covered by the contract. This aligns with the idea that the exemption clause is intended to cover only the matters contained in the contract, because the interpretation is constrained to what the contract says in its own text.

Why this interpretation rule fits the statement: The four corners rule emphasizes textual interpretation and restricts considerations to the written terms inside the document. If the exemption clause were meant to extend beyond the contract's words, that would typically require extrinsic evidence or other interpretive standards, which the four corners rule purposefully limits.

Why other possible interpretation rules (hypothetical) might be considered but are not applicable here: If we compared to a rule like contra proferentem (ambiguities in a contract are interpreted against the drafter) or the parol evidence rule (baring prior or contemporaneous agreements when there is a written contract), these address different aspects of interpretation. Contra proferentem focuses on favoring the party who drafted the clause when ambiguity exists, not specifically on whether the clause’s scope is limited to the contract’s terms. The parol evidence rule handles the admissibility of external evidence to interpret or add terms outside the written contract, but again, it does not precisely define the scope restriction of the exemption clause within the contract itself.

In sum, the four corners rule directly supports the idea that interpretation should be limited to the matters contained within the contract’s own language, which is why it is the rule that states 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.

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