ο€ͺ ο€ͺ Electronic copy available at: https://ssrn.com/abstract=4809006 <> INTRODUCTION Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> I. TWO AND HALF THEORIES OF INTERPRETATION Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> * Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› II. CONTRACT INTERPRETATION: FINDING MEANING OR PREDICTING INTENT? Electronic copy available at: https://ssrn.com/abstract=4809006 <> β€œA sentence is never not in a context. We are never not in a situation. . . . A set of interpretive assumptions is always in force. A sentence that seems to need no interpretation is already the product of one.” Fish (1978) [Textualists believe that t]he [judge can] . . . retir[e] into that lawyer’s Paradise where all words have a fixed, precisely ascertained meaning; where men may express their purposes, not only with accuracy, but with fullness; and where, if the writer has been careful, a lawyer, having a document referred to him, may sit in his chair, inspect the text, and answer all questions without raising his eyes β€œ(Thayer, 1898, at 428-29) [I]t can hardly be insisted on too often or too vigorously that language at its best is always a defective Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› and uncertain instrument, that words to not define themselves, that terms and sentences in a contract, a deed or a will do not apply themselves to external objects and performances, that the meaning of such terms and sentences consists of the ideas that they induce in the mind of some individual person who uses or hears or reads them, and that seldom in a litigated case do the words of a contract convey one identical meaning to the two contracting parties or to third persons. Therefore, it is invariably necessary, before a court can give any meaning to the words of a contract and can select one meaning rather than other possible ones as the basis for the determination of rights and other legal effects, that extrinsic evidence shall be heard to make the court aware of the β€œsurrounding circumstances,” including the other persons, objects, and events to which the words can be applied and which caused the words to be used. (emphasis added) (Corbin, 1960, at Β§535) Electronic copy available at: https://ssrn.com/abstract=4809006 <> III. PRECISION AND ACCURACY Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Figure 1 Contextualism vs. Textualism as Precision vs. Accuracy Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› IV. BIAS V. VARIANCE 2006 Electronic copy available at: https://ssrn.com/abstract=4809006 <> 𝑀𝑆𝐸 = π΅π‘–π‘Žπ‘ 2+π‘£π‘Žπ‘Ÿπ‘–π‘Žπ‘›π‘π‘’+π‘–π‘Ÿπ‘Ÿπ‘’π‘‘π‘’π‘π‘–π‘π‘™π‘’ π‘’π‘Ÿπ‘Ÿπ‘œπ‘Ÿπ‘  Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› 2 π΅π‘–π‘Žπ‘ 2 = (𝐸 (𝑓̂(π‘₯;𝐷)βˆ’π‘“(π‘₯)) 𝐷 π‘‰π‘Žπ‘Ÿπ‘–π‘Žπ‘›π‘π‘’ = 𝐸 [(𝑓̂(π‘₯;𝐷)βˆ’πΈ [𝑓̂(π‘₯;𝐷)]) 2 ] 𝐷 𝐷 𝑓̂ 1992 Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> V. INTERPRETATION VERSUS SIMULATION Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› β€œShould [Alice] be absolutely confident that [Bob] prefers the new arrangement, it would not be a breach of [Alice’s] promise for her to leave a message for [Bob] simply informing [Bob] of the new plan. [Bob’s]’s actual consent is not important where there is no uncertainty about [Bob’s]’s understanding of her interests.” β€œBecause intimates know more about each other, they can more reliably assess and act on a richer account of each other’s evolving interests; to the extent this holds true, they can adopt and continually update an ex-post view.” Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› Electronic copy available at: https://ssrn.com/abstract=4809006 <> CONCLUSION Electronic copy available at: https://ssrn.com/abstract=4809006 <> π‘‡π‘–π‘šπ‘’ π‘Žπ‘›π‘‘ πΆπ‘œπ‘›π‘‘π‘Ÿπ‘Žπ‘π‘‘ πΌπ‘›π‘‘π‘’π‘Ÿπ‘π‘Ÿπ‘’π‘‘π‘Žπ‘‘π‘–π‘œπ‘› 1. 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