What does the term construction refer to in contract law?

• A. The process of building a structure
• B. The court's interpretation of a contract
• C. The drafting of a contract
• D. The payment of damages

Answer: (B)

In contract law, construction is about interpreting the contract’s language to determine the parties’ intent and their obligations. It’s the judge’s task to give meaning to the terms, resolve ambiguities, and apply the contract as a whole in light of the circumstances and relevant rules of interpretation. This helps figure out what each party is obliged to do and what remedies apply if something goes wrong.

So the term refers to the court’s interpretation of a contract, not the physical act of building, not the drafting of the contract, and not the damages or remedies. The other options describe activities outside the interpretive process.