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KembaraXtra – Legal Terms – Interpretation Clause
An interpretation clause is a section within a legal document that defines specific words or phrases used elsewhere in that document. Its purpose is to ensure consistency and clarity by fixing meanings that might otherwise be ambiguous.
In statutes, interpretation clauses help prevent disputes over terminology and reduce the need for judicial interpretation. In contracts, they allow parties to tailor meanings to suit their agreement, even where those meanings differ from ordinary usage.
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