PSI Ohio Insurance Practice Exam

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

1. The entire contract

2. Only the written agreement

3. The oral agreements made

4. The summary of terms only

The correct answer is: The entire contract

When courts seek to determine the intent of the parties within a contract, they consider the entire contract as a whole. This approach allows for a comprehensive understanding of the agreement, as it takes into account not just isolated provisions but the context and interplay of all terms included. Evaluating the entire contract helps ensure that the interpretation reflects the full scope of the parties' intentions, rather than focusing solely on specific sections or external communications. While other elements, such as oral agreements or summaries, might provide context or additional insight, they do not form the core basis for understanding the contractual intent in the same way as analyzing the full document does. This holistic approach is crucial because contracts are often complex and the nuances in language can significantly impact the interpretation.