Legal Definitions - operative construction

Definition: Operative construction refers to the interpretation of a written agreement, such as a contract, statute, or regulation, that is being relied upon by the parties involved, a court, or an administrative agency. It can also refer to the working embodiment of an invention, which is used to conceptualize how the invention will work rather than to create a working model. Additionally, it is the doctrine that the interpretation of a statute or regulation made by an administrative agency charged with enforcing it is entitled to judicial deference unless it is arbitrary and capricious.

• When two parties sign a contract, they both rely on the operative construction of the terms and conditions outlined in the agreement.
• In the field of patents, an inventor may create a working embodiment of their invention to better understand how it will function, even if it is not a fully functional model.
• If an administrative agency is responsible for enforcing a regulation, their interpretation of that regulation is given deference by the courts unless it is deemed to be arbitrary and capricious.

These examples illustrate how operative construction is used in different contexts to interpret written agreements, conceptualize inventions, and enforce regulations.