Ambiguity in Contracts

Ambiguity in contracts occurs when the language used is unclear or open to multiple interpretations, making it uncertain what the parties intended. This can happen if words or phrases are vague, conflicting, or incomplete, potentially leading to disagreements about rights and obligations. Courts often interpret ambiguous terms based on the context, the parties' intentions, and industry standards to resolve uncertainties. To avoid issues, it’s important for contracts to be written clearly and precisely, ensuring all terms are understandable and unambiguous to prevent misunderstandings or legal disputes.