GENERAL STANDARDS FORCONTRACT INTERPRETATION

LS-5 Contract Analysis 1

Clear and Unambiguous

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Language is clear and definite

Meaning determined without looking at other standards

Language means what it says

Past practice does not override – language speaks for itself

Example

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Contract language: “The company will provide required safety equipment.”

Company: It means it must make safety equipment available to purchase.

Union: The company has agreed to pay for the equipment

Specific Wording Weight

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Conflict between general and specific language

Specific language will govern

Presumes both parties examined the matter more closely

Therefore specific language given more consideration

Example – Specific Language

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Contract Language (general): The company shall continue to make reasonable provisions for the safety and health of its employees.

Same Contract (specific): Wearing apparel and other protective equipment necessary to protect employees from injury shall be provided by the company in accordance with practices now prevailing or as such practices may be improved from time to time by the company.

Question

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Using language on last slide:

Is the company required to provide rain clothes to certain employees if this had not been before?

Express One Thing Excludes Another

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If one item is mentioned and others are not generally means others were meant to be excluded.

Example Contract Language: “Safety glasses, hard hat, and gloves will be provided by the company to those working in yard classifications.”

Is someone in a yard classification entitled to have the company provide safety shoes?

Enumeration Limits

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General language follows a list of specific terms

Interpreted to cover only things of same nature

Example Contract: Seniority shall govern in all cases of layoff,

promotion, and transfers.

(same contract) Overtime shall be shared among employees within a given classification

If a senior electrician demanded overtime over a junior electrician, how would it be decided?

Words Judged by Context

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Words and phrases interpreted by the context in which they appear

Where words appear often determine what was meant

Example: 1.Holidays Worked: Holiday pay of eight hours

plus time worked at the applicable rate will be paid for holidays worked.

2. Holidays Not Worked: To be eligible for holiday pay, and employee must work the day before and the day after a holiday.

Holiday Pay Eligibility Question

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A worker was absent the day before a holiday, but worked eight hours on the holiday. If the company argued that the worker was not eligible for holiday pay, would it be correct?

Agreement Interpreted as a Whole

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The meaning of each sentence and each paragraph must be determined in relation to the contract as a whole

Sections or portions of the contract cannot be isolated from the rest of the contract and interpreted without regard to what the rest of the contract says.

All parts of the contract have some meaning, or they would not have been included in the contract.

Words Given Normal Meaning

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The ordinary and popularly accepted meaning and definition of words and phrases will be used unless something special was intended.

Contract Example: “Vacation pay shall be based on average

earnings.”

Question: An employee worked on two types of jobs. The employer based vacation pay on the average earnings of the lower rated job. Is this correct?

Standards Summarized.

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Clear and unambiguous Specific wording given greater weight To express one word is exclude another Enumeration limits general language to

the category of enumerated items Words will be judged by their context The agreement will be interpreted as a

whole Words will be given normal meaning