5. Interpretation of Contracts

Duty of courts in interpreting contracts

It is not the province of the court to alter a contract by construction or to make a new contract for the parties. Its duty is confined to the interpretation of the one which they have made for themselves without regard to its wisdom or folly as the court cannot supply material stipulations or read into the contract words which it does not contain. (Cuizon v. CA, G.R. No. 102096, August 22, 1996)

CONSENT

Definition - Meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract; concurrence of a certain offer and an absolute acceptance.

Literal meaning

The terms of the contracts determine the respective obligations of the parties. If the terms of the contract are clear and leave no doubt upon the contracting parties’ intention, such terms should be applied in their literal meaning. (CIVIL CODE, art. 1370)