The Contract Agreement Is Enforceable And Binds The Parties

997 Words Mar 3rd, 2016 4 Pages
Having concluded that the July 7, 2009 settlement agreement is enforceable and binds the parties, we must then interpret the terms of that agreement. “Settlement agreements are enforceable as independent contracts, subject to the same general rules of construction that apply to other contracts.” Maslow v. Vanguri, 168 Md. App. 298, 316 (2006). We begin by observing that the interpretation of a contract is a question of law subject to de novo review. Spacesaver Sys., Inc. v. Adam, 440 Md. 1, 7 (2014). Moreover, in Maryland, we employ the objective theory of contracts, under which:
“[A court is to] determine from the language of the agreement itself what a reasonable person in the position of the parties would have meant at the time it was effectuated. In addition, when the language of the contract is plain and unambiguous there is no room for construction, and a court must presume that the parties meant what they expressed. In these circumstances, the true test of what is meant is not what the parties to the contract intended it to mean, but what a reasonable person in the position of the parties would have thought it meant. Consequently, the clear and unambiguous language of an agreement will not give away to what the parties thought that the agreement meant or intended it to mean.”

Id. at 8 (alteration in original) (quoting Gen. Motors Acceptance Corp. v. Daniels, 303 Md. 254, 261 (1985)). As the Court of Appeals articulated in Gen. Motors Acceptance Corp., and…
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