WHEN A CONTRACT IS UNCLEAR, THEN WHAT?

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I often get people in conflict over the wording a contract.  “It’s not clear!” is often the claim.  So each party has their own interpretation as to what should happen.

So, who wins?  Who loses?

The general rule I have found, after talking to my legal advisers is that contracts are construed against the party that drew it up.  In other words, if you write the contract and get someone to sign it … while you are both bound by it … if there is a conflict … the ambiguity counts against you!

That’s why many experts says to have both parties participate in the drafting and revising.  And actually state in the contract that both parties have participated and have had their own legal counsel.

 

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