Are ambiguous contracts enforceable?

Are ambiguous contracts enforceable?

Ambiguity in contract law can result in a void or voidable contract, depending on the type of ambiguous language identified in the agreement. A contract might be ambiguous if the language itself, i.e. a specific term, word, or phrase, is reasonably subject to more than one interpretation.

What happens when a contract is ambiguous?

But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear. If a contract is ambiguous, it can sometimes be resolved by the parties through further discussions. If not, it may be necessary to have the document reviewed in court to have the issues resolved.

Who does ambiguity in a contract benefit?

There is a general rule that a court will construe ambiguous contract terms against the drafter of the agreement. But this rule only applies where one contracting party is in a superior bargaining position, usually either as a result of greater experience or the assistance of counsel.

What is the Contra Proferentem rule of interpretation?

The Contra Proferentem rule in law states that where an ambiguity or contradiction exists within a contract, the court should apply the interpretation of the term that goes against the party that, figuratively, was who held the pen.

Can you exclude contra Proferentem?

The contra proferentem principle essentially states that if there is any doubt about the meaning or scope of an exclusion clause, the ambiguity should be resolved against the party seeking to rely on the exclusion clause on the basis that parties are not lightly to be taken to have intended to cut down the remedies the …

What is the four corner rule?

From Wikipedia, the free encyclopedia. The Four Corners Rule is a legal doctrine that courts use to determine the meaning of a written instrument such as a contract, will, or deed as represented solely by its textual content.

What is contra Proferentem treaty?

“Contra proferentem”, a self-serving argument used by treatyists, is a doctrine of contractual interpretation providing that, where a promise, agreement or term is ambiguous, the preferred meaning should be the one that works against the interests of the party who provided the wording.

Why do courts use Contra Proferentem?

Under English law, the “contra proferentem” principle is used to describe two related rules of contractual construction2 that: (i) in case of doubt, a contractual provision is construed against the party which drafted it or put it forward for inclusion in the contract;3 and (ii) ambiguities in exclusion or limitation …

What is the meaning of specific performance?

Specific performance means fulfilling a promise made under a contract as agreed. In India, most of the specific performance suits relate to sales of immoveable properties and to some extent transfer of shares. In a suit for specific performance, plaintiff must approach Court with clean hands .

Where did Contra Proferentem come from?

Originating from the case of Canada Steamship Lines Ltd v The King in 1952, the relevance of the contra proferentem rule has been extensively debated over the past few years.

Where do implied terms come from?

Implied terms are terms implied into commercial contracts by the courts because the term hasn’t been expressly included by the parties. This may be because the parties did not consider it, did not think that the issue would arise or simply omitted to include the term.

Whats does ambiguous mean?

1a : doubtful or uncertain especially from obscurity or indistinctness eyes of an ambiguous color. b : inexplicable. 2 : capable of being understood in two or more possible senses or ways an ambiguous smile an ambiguous term a deliberately ambiguous reply.

What are the main contract types?


  • Commercial contract.
  • Domestic building contract.
  • Percentage rate contract.
  • Item rate contract or Unit price contract.
  • Lump sum and scheduled contract.
  • Cost plus fixed fee contract.
  • Cost plus percentage of cost contract.
  • Subcontract agreement.

Which is the least preferred contractor type because it places the greatest risk on the government?

Time and materials or Labor hour contracts have the biggest risk to the government. There is no specific deliverable and the government may not get what they want.

Which contract type has lowest risk to the seller?

Fixed Price Contracts These are also known as Lump Sum contracts. The seller and the buyer agree on a fixed price for the project. The seller often accepts a high level of risk in this type of contract. The buyer is in the least risk category since the price the seller agreed to is fixed.

What type of contract has the least amount of risk for the buyer?

The list of contract options from least risk for the buyer (project) to most risk for the buyer are: Firm Fixed Price (FFP) Fixed Price Incentive Fee (FPIF, aka Fixed Price Incentive or FPI) Fixed Price with Economic Price Adjustment (FP-EPA)

What are the risks in a contract?

The four most common types of contract risk are financial, legal, security, and brand risk. Given the importance of contracts for your organization, it’s critical to understand these different risk types in your contract management processes and take the necessary steps to identify, assess, and mitigate them.

Which contract types would entail the most cost risk for the buyer?

Cost reimbursable (or Cost Plus) Cost reimbursable (CR) contracts involve payment based on sellers’ actual costs as well as a fee or incentive for meeting or exceeding project objectives. Therefore, the buyer bears the highest cost risk.

What is true lump sum contract?

Under a lump sum contract, a single ‘lump sum’ price for all the works is agreed before the works begin. It is defined in the CIOB Code of Estimating Practice as, ‘a fixed price contract where contractors undertake to be responsible for executing the complete contract work for a stated total sum of money.