ORS 42.220
Consideration of circumstances


In construing an instrument, the circumstances under which it was made, including the situation of the subject and of the parties, may be shown so that the judge is placed in the position of those whose language the judge is interpreting.

Notes of Decisions

Trial court’s characterization of deed of trust as “in the nature of a performance bond” did not violate parol evidence rule as this section requires that court consider circumstances surrounding transaction to determine purposes to which parties intended to apply instrument. Miller v. Safeco Title Ins. Co., 758 F2d 364 (1985)

Seller’s changing relationship with corporation, including his final severing of ties by sale of his stock, plus sale of stock at very low price in exchange for indemnification were proper evidence. Rodway v. Arrow Light Truck Parts, 96 Or App 232, 772 P2d 1349 (1989)

Parol evidence of circumstances surrounding creation of agreement is admissible to determine whether terms of integrated writing are ambiguous. Abercrombie v. Hayden Corp., 320 Or 279, 883 P2d 845 (1994); Criterion Interests, Inc. v. The Deschutes Club, 136 Or App 239, 902 P2d 110 (1995), modified 137 Or App 312, 903 P2d 421 (1995), Sup Ct review denied; Batzer Construction, Inc. v. Boyer, 204 Or App 309, 129 P3d 773 (2006), Sup Ct review denied

Parties’ precontract negotiations constitute circumstances underlying formation of contract. Batzer Construction, Inc. v. Boyer, 204 Or App 309, 129 P3d 773 (2006), Sup Ct review denied

Law Review Citations

28 WLR 223 (1992)


Source
Last accessed
May. 15, 2020