Abstract
This chapter examines the most relevant Draft Common Frame of Reference (DCFR) and Common European Sales Law (CESL) provisions on the interpretation of contracts, from the perspective of German and English law. It shows that the DCFR and the proposed CESL are very much in line with German law. Most importantly, the balancing approach concerning the relevance of objective and subjective criteria corresponds with the German approach. In contrast, the marked divergences between English law and the DCFR and the proposed CESL in the context of contractual interpretation constitute one of the main reasons for the hostility to these European developments routinely expressed by English practitioners and judges who have considered the instruments.
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