construed
Definition
Construed means interpreted or understood in a particular way, usually referring to how a court or legal authority would read and make sense of contract language or a law. When a contract says something will be 'construed' a certain way, it means that specific interpretation will be treated as the official meaning if anyone ever disagrees about what the words mean.
Example
A contract might say 'this agreement shall be construed under the laws of California,' which means any disputes about what the contract means will be interpreted by applying California's legal rules.
Watch Out
Pay close attention to any clause that says your contract will be 'construed against' one party, because that means if the wording is unclear, that party automatically loses the argument about what it means.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.