The text of the agreement
Every day, many agreements are concluded. When you make agreements with another party, it is advisable to record them in writing. This way both parties know what they can expect from each other. It is not easy to include everything in an agreement and sometimes agreements are not always easy to understand.
What happens when uncertainty arises? For example, about the meaning of terms or the interpretation of parts of the text. If you cannot agree on the precise meaning of the agreements, a dispute can arise. The court can be asked to interpret how texts should be understood. We explain in this blog what the court pays attention to and what you can therefore also pay attention to yourself.
A clear agreement hopefully contains all agreements made between parties. Of course, unforeseen circumstances may occur that have not been taken into account, or discussion may arise afterwards about the interpretation of certain agreements. When you cannot resolve it together, a dispute can arise. A third party can help with the interpretation of text and various provisions. This can be a lawyer, but ultimately also a judge.
The Haviltex criterion
In Dutch law, the so-called Haviltex criterion applies to the interpretation of agreements. This criterion is named after a Supreme Court ruling from 1981. According to this criterion, the interpretation of an agreement depends not only on the linguistic meaning of the text, but also on the meaning that parties could reasonably attribute to each other's statements and conduct in the given circumstances and what they could reasonably expect from each other in this regard.
This means that when interpreting an agreement, the court does not only look at the literal text, but also at the intention of the parties, the context in which the agreement was concluded, and all other relevant circumstances of the case.
Conclusion
When drafting agreements, it is important to be as clear as possible. Should discussion nevertheless arise about the interpretation of provisions, the court will determine what parties intended based on the Haviltex criterion. It is therefore advisable to seek legal advice when drafting important agreements.