Which term refers to the court's interpretation of a contract, sometimes called the act of interpreting a contract?

• A. Equitable title
• B. Construction
• C. Declaratory judgement
• D. Specific performance

Answer: (B)

The term for the court’s interpretation of a contract is construction. When judges interpret contract language, they are “constructing” the agreement—looking at the plain meaning of the words, how the contract reads as a whole, and the parties’ intent to resolve any ambiguities and determine each side’s rights and duties. This process distinguishes the contract’s meaning from other legal concepts.

Equitable title refers to a beneficial ownership interest rather than an interpretive process. A declaratory judgment is a court ruling that clarifies rights or obligations under a contract or law, but it’s not the act of interpreting the contract itself. Specific performance is a remedy directing a party to perform the contract, not the interpretive step of understanding what the contract requires.