Alpha Manufacturing and Beta Supplies entered into a contract where Alpha agreed to deliver raw materials by 'the start of the operational phase.' Beta received the materials on September 15th and contends the delivery was late, asserting that 'the start of the operational phase' meant the commencement of their production schedule on September 1st. How should the court interpret the delivery date in the contract?
The delivery date can be adjusted if both parties agree to a different timeline after the contract is signed.
The delivery date is September 15th because that was the actual delivery date.
The delivery date aligns with the beginning of the operational phase as defined by the contractual context and mutual understanding of the parties.
The ambiguity in the term renders the contract unenforceable.
The court will interpret 'the start of the operational phase' based on the context of the contract and any definitions provided within it. If the contract specifies that the operational phase begins on September 1st, Beta's interpretation aligns with the parties' mutual understanding. Absent specific definitions, the court will consider industry standards and the overall intent of the agreement.
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