§ 24-3-4 [Surrounding Circumstances Aid Contract Construction]

When there is a disagreement about what a contract means, both sides can bring in evidence about the situation that existed when the contract was made. This helps the court understand what the people involved actually meant when they wrote the agreement.

For example, if two people argue about the meaning of a word or phrase in a contract, a judge or jury can look at things like past dealings between the parties, the industry they work in, or what was happening at the time they signed the contract. The written words alone do not have to tell the whole story.