Which of the following best describes how contracts should be interpreted?

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When interpreting contracts, it is crucial to understand them as comprehensive documents that encompass all their parts and context. The principle of looking at contracts as a complete document is grounded in the idea that all sections of a contract work together to convey the mutual intentions of the parties involved. This holistic approach aids in understanding the meaning of each clause in relation to other terms and provisions.

Assigning ordinary meanings to words ensures that the language used is interpreted in a way that a reasonable person would understand, thus maintaining the integrity of the contract's intent. This method promotes fairness and clarity, which are essential for effective legal agreements.

In contrast to interpreting contracts in a fragmented manner, focusing solely on individual clauses might lead to misinterpretations or a misunderstanding of how different parts of the agreement influence one another. Additionally, prioritizing handwritten provisions or preprinted language could undermine the overall purpose of a contract, which is a mutual agreement that balances the terms beneficial to all parties involved.

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