Approaches of interpretation of express terms

Question

What are the approaches of interpretation of express terms?

Answer 1

2 approaches are possible when an interpreting express term is in contracts:

1. Literal/plain-meaning approach relies on the dictionary meaning of words that determine the meaning of a term which a contract should bear.

2. Liberal approach determines about the purposes that parties had in mind in drafting the contract/term and construes words which actually used in light of that purpose.