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We all know that ambiguity in written contract terms and schedules is something that should be avoided as much as possible. The business impact of ambiguous contract terms often leads to serious misunderstandings and in turn, usually means conflict between you and your supplier.

Unless a court determines the contract is ambiguous, meaning the terms are subject to more than one reasonable interpretation.If both sides have reasonable interpretations of the same term, then the contract is ambiguous, and the court may look outside of the contract to interpret the contract's meaning.

A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation.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.

Contracts can also designate clauses in one portion of a contract to supersede conflicting provisions found in another part of the contract.In that situation, the contract parties can turn to California statutes and appellate court cases to find other rules of interpretation.

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.

A void contract is one that is illegitimate and unenforceable no matter what. Contracts are void because of the way they were drafted.A contract can also be considered void if all obligations have been fulfilled and there is no longer anything to enforce.

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

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.

Sometimes the parties negotiating a contract omit to address an important issue. Only in certain circumstances can the courts imply a term in the contract to deal with the situation. (5) It must not contradict any express term of the contract.

In cases where an ambiguity remains, the Judicial Council of California Civil Jury Instructions instruct courts to interpret the contract against the drafting partymeaning the ambiguous provision should be interrupted in a manner that benefits the side that did not write the agreement.