What does the liberal approach to contract interpretation assess?

The liberal approach to contract interpretation focuses on understanding the overall purpose of the contract rather than strictly adhering to the literal wording or technicalities within the document. This approach allows for a more flexible interpretation that considers the intentions of the parties involved, the context in which the contract was created, and the practical implications of its terms.

By prioritizing the overall purpose, this method seeks to give effect to the mutual goals of the parties rather than limiting the interpretation to isolated clauses or standard definitions. It recognizes that the reality of contractual relationships is often more nuanced and that the intentions behind agreements can encompass broader principles beyond just what's explicitly stated.

This approach is particularly useful in the hospitality industry, where contracts may need to account for varying circumstances and expectations from both parties, ensuring that the fundamental objectives of the agreement are realized in practice.