Question

1-What rules of Interpretation typically applies to a Limitation of Liability clause

2-Please give at least two (2) examples of "Bad Faith" that could occur in a Tendering situation?

3-In addition to bad conduct what must also be found in order for there to be a finding of Bad Faith?

Answer 1

There are different rules of interpretation

The three main rules on interpretation  Plain meaning Rule, Mischief rule ad golden rule.

1: Literal or plan meaning rule, The rule says that whatever written has in natural or ordinary meaning. of English,,if after interpretation if the rule is clear then we proceed to execute the rule.

2:Mischef rule: The rule attempt to determine legislators' intention.

3: Golden rule: This is a combination of plain meaning rule and the mischief rule. For example, when a word has more than one meaning the judge has the right to take the right meaning. In case there is the only meaning and this meaning causes a bad impact judge has the right to apply a different meaning.

Question 2:

Example1: One party agree to pay the required compensation for the settlement of the case and enter into a settlement agreement but has no intention to make the payment .This is done in bad faith.

Example2: In a contract, one party agrees to deliver something for which the person clearly knows he does not have the capacity .But having this prior information the person still enters into a contract with the intention to cheat. This is clearly done in bad faith.

3: The traits of bad faith include the non-performance of duties, fraudulent intent., neglect of fair dealing standards. These behaviors clearly help to distinguish and finding bad faith.