SET 3: AMBIGUITY + INTERPRETATION

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Last updated 3:50 AM on 4/27/26
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9 Terms

1
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What does ambiguous mean?

A term that can have more than one meaning.

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What do courts do if a contract is clear?

Enforce it exactly as written.

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What do courts do if a contract is ambiguous?

Use interpretation tools.

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Tool #1 for interpreting ambiguity?

Dictionary definitions.

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Tool #2 for interpreting ambiguity?

Whole contract text (read everything together).

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Tool #3 for interpreting ambiguity?

Surrounding circumstances (context of deal).

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What are adverse presumptions?

Courts interpret unclear terms against the party who wrote them.

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Why do courts use adverse presumptions?

To prevent unfair drafting advantage.

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White v. PR issue (general idea)?

How courts interpret unclear contract language using context and fairness rules.