When courts look at a contract to determine the intent of the parties, what is considered?

Study for the PSI Insurance Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

When courts examine a contract to ascertain the intent of the parties involved, the key focus is on the entire contract. This comprehensive review enables the court to understand the context and the relationship between various provisions contained within the document. By considering the entire contract, the court can evaluate the express intentions of the parties, ensure that all relevant terms and conditions are taken into account, and determine how the parties understood their rights and obligations at the time of contracting.

Focusing solely on a specific portion, such as only the last written amendment or just the signed clauses, would overlook the complete picture and could lead to misinterpretations of the parties' true intentions. Similarly, oral agreements made during negotiations may provide context, but they can diminish the clarity and enforceability of a written contract since written contracts are generally intended to reflect the final agreement between the parties clearly.

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