Mont. Code Ann. » TITLE 28. CONTRACTS AND OTHER OBLIGATIONS · CHAPTER 3. INTERPRETATION OF CONTRACTS · Part 4. Factors Considered in Determining Intention
Montana Code Annotated

Mont. Code Ann. § 28-3-402 (2026)

Reference To Circumstances Permissible

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  1. MCA Contents
  2. TITLE 28
  3. CHAPTER 3
  4. Part 4
  5. 28-3-402 Reference to circumstances permissible

TITLE 28. CONTRACTS AND OTHER OBLIGATIONS

CHAPTER 3. INTERPRETATION OF CONTRACTS

Part 4. Factors Considered in Determining Intention

Reference To Circumstances Permissible

28-3-402. Reference to circumstances permissible. A contract may be explained by reference to the circumstances under which it was made and the matter to which it relates.

History: En. Sec. 2212, Civ. C. 1895; re-en. Sec. 5036, Rev. C. 1907; re-en. Sec. 7538, R.C.M. 1921; Cal. Civ. C. Sec. 1647; Field Civ. C. Sec. 812; re-en. Sec. 7538, R.C.M. 1935; R.C.M. 1947, 13-713.

Notes of Decisions
Cited in 26 cases (3 in the last 5 years), 1979–2023 · leading case: Mary J. Baker Revocable Trust v. Cenex Harvest States, Cooperatives, Inc., 2007 MT 159, 164 P.3d 851.
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Mary J. Baker Revocable Trust v. Cenex Harvest States, Cooperatives, Inc., 2007 MT 159, 164 P.3d 851. · cites it 5× “Section 28-3-402, MCA (“A contract may be explained by reference to the circumstances under which it was made and the matter to which it relates.”
Kluver v. PPL Montana, LLC, 2012 MT 321, 293 P.3d 817. · cites it 6× “00) upon Defendants’ decision to convey the property.” While the Kluvers claim the court altered the terms of the MOU, Appellees maintain that when the language of the MOU is read in context of the entire agreement, it is clear that the parties always intended a right of first…”
Mattson v. Montana Power Co., 2009 MT 286, 215 P.3d 675. · cites it 4× “Sections 28-3-402, 28-2-905(2), 70-20-202(2), MCA; see also Baker Revoc.”
In Re the Marriage of Mease, 2004 MT 59, 92 P.3d 1148. · cites it 4× “Further, just as the evidence of Robert's conduct is evidence indicating intent through course of performance, see § 28-3-402, MCA; cf. § 30-2-208, MCA, evidence of the technical accounting definitions of gross and disposable was admissible to show the parties' intent as those…”
Richards v. JTL Grp., Inc., 2009 MT 173, 212 P.3d 264. · cites it 4× “" In turn, § 1-4-102, MCA, states: [f]or the proper construction of an instrument, the circumstances under which it was made, including the situation of the subject of the instrument and of the parties to it, may also be shown so that the judge is placed in the position of those…”
Weinberg v. Farmers State Bank of Worden, 752 P.2d 719 (Mont. 1988). · cites it 6× “Section 28-3-402, MCA, provides that a contract may be explained by reference to the circumstances under which it was made and the matter to which it relates.”
Daines v. Knight, 888 P.2d 904 (Mont. 1995). · cites it 3× “The language of a contract governs its interpretation if the language is clear and explicit. Section 28-3-401, MCA. A contract may be explained by reference to the circumstances under which it was made, and the matter to which it relates.”
Murray v. BEJ Minerals, 2020 MT 131, 400 Mont. 135. · cites it 5× “” 13 Section 28-3-402, MCA. “However broad may be the terms of a contract, it extends only to those things concerning which it appears that the parties intended to contract.”
Shiplet v. First Sec. Bank of Livingston, Inc., 762 P.2d 242 (Mont. 1988). · cites it 3× “We therefore applied Section 28-3-402, MCA, which allows evidence of the circumstances under which an agreement is made in order to explain, but not modify, its terms.”
Kelly v. Wallace, 1998 MT 307, 972 P.2d 1117. · cites it 3× “” Section 28-3-402, MCA. They rely on § 70-1-521, MCA, which states that “[a] present interest and the benefit of a condition or covenant respecting property may be taken by any natural person under a grant although not named a party thereto.”
Big Sky Civil & Envtl., Inc. v. Dunlavy, 2018 MT 236, 429 P.3d 258. · cites it 3× “" Section 28-3-402, MCA. Accord Restatement (Second) of Contracts § 202(1) (1981).”
Broadwater Dev., L.L.C. v. Nelson, 2009 MT 317, 219 P.3d 492. “See §§28-3-402,28-2-905(2), 70-20-202(2), MCA.”
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