When deciding breach of contract cases, courts use the well-settled analysis of whether the terms of the agreement are clear and unambiguous, and if so, the courts will enforce the agreement as written and not resort to the use of extrinsic evidence to aid in the interpretation of the agreement. Lui v. Park Ridge at Terryville Association, Inc., 601 N.Y.S.2d 496, 498 (2d Dept. 1993); Zalitis v. Circus World Toy Stores, Inc., 603 N.Y.S.2d 897, 898 (2d Dept. 1993).
If the court finds that the agreement is ambiguous, then the court may use extrinsic evidence to try to decide what the parties intended. Record v. Royal Globe Insurance Company, 443 N.Y.S.2d 755, 757 (2d Dept. 1981). This column discusses several recent decisions by Long Island courts that have applied these principles in deciding the rights and obligations of parties under various contractual situations.
