How is contract precedence used in Teleservice when there are more than one eligible contract

Client is creating party level contract in addition to product level contracts. The party level will provide cover for missing data. The missing data could be products not loaded in install base due to legacy data missed during conversion or legacy contracts not covering certain products in install base.

What happens when there are products that have active warranty or active maintenance agreement (and are in IB) but now also have this party level agreement.

What precedence logic does Teleservice uses to automatically default an entitlement out of many eligible contracts.

Same question when SR is created from iSupport?

Does warranty coverage takes precedence over party level contract line and gets defaulted ?