What does construed against the drafter mean?

What does construed against the drafter mean?

Contra proferentem (Latin: “against [the] offeror”), also known as “interpretation against the draftsman”, 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 …

Who does ambiguity in a contract favor?

The contra proferentem rule is a legal doctrine in contract law which states that any clause considered to be ambiguous should be interpreted against the interests of the party that created, introduced, or requested that a clause be included.

How courts interpret ambiguous contracts?

How Do Courts Treat Ambiguous Contracts? Usually, if there is no evidence of fraud or misrepresentation between the parties, a court will allow the parties to rewrite the contract in order to resolve the ambiguity.

What does no construction against drafter mean?

No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party having or being deemed to have structured or drafted such provision.

What is the contra proferentem doctrine?

A Latin term used in contract law referring to the principle that a judge will construe an ambiguous term against the party that imposed the inclusion of the term in the contract during negotiation or drafting.

What happens when there is an ambiguity in a contract term?

Once a trial judge determines that a contract contains an ambiguity – meaning the contract or a provision within the contract is susceptible to two or more reasonable interpretations – the court will look beyond the language of the contract itself to resolve the ambiguity and enforce the contract.

What does it mean for a contract to be vague or ambiguous?

Cases such as this one from New York explain that ambiguity in the context of a contract is defined as “whether a reasonably intelligent person looking at the contract objectively could interpret the language in more than one way.” When a contract is ambiguous, the courts may turn to extrinsic evidence to determine the …

When ambiguities appear in a contract such as an insurance policy they will be construed or interpreted against?

UNDER THE DOCTRINE of con- tra proferentem, ambiguities in contract language are construed against the drafter, typically the insurer. 1 At one time, the exis- tence of an ambiguity in an insurance contract resulted in a presumption of coverage for the insured.

Are ambiguous contracts enforceable?

Yes. Once a trial judge determines that a contract contains an ambiguity – meaning the contract or a provision within the contract is susceptible to two or more reasonable interpretations – the court will look beyond the language of the contract itself to resolve the ambiguity and enforce the contract.

How does the court define ambiguous?

How is a contract construed?

In construing particular terms of a contract the whole of the contract must be considered. Further, if there is no ambiguity or uncertainty, then the court must give effect to the intention of the parties, however harsh.

What is meant by the contra proferentem rule how can it be avoided?

The contra proferentem rule, also known as “interpretation against the draftsman” broadly states that where there is doubt about the meaning of the contract, the words will be construed against the person who put them forward.

Is ambiguous contract legal?

What is the policy ambiguity rule?

What is the Ambiguity Principle in Insurance? In the insurance industry, the ambiguity principle is a rule that protects the insured from obscurity and inexactness that might be contained in an insurance policy or contract.

What typically happens if a contract contains an ambiguous term?

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.