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Interpreting the Actual Intentions of Parties to a Legal Transaction According to the Supreme Court

15.05.2019

In its decision file no. 20 Cdo 196/2019 dated 27/02/2019, the Supreme Court of the Czech Republic commented on the issue of intentions of actors, i.e., parties to a legal transaction. According to the Supreme Court, unlike the rules specified by the old Civil Code, the legal standards applicable from 01/01/2014 disregard the formal point of view, which was typical for the old Civil Code. The new rules emphasize the actual will of the actors. An act is to be interpreted as intended by the actor; the actor’s intention is the decisive factor when interpreting an act. The same applies to the shared intention of contractual parties at the moment of concluding an agreement. Such shared intention should prevail over the verbatim or objective (language) expression of that intention.