Final answer:
In cases of contract ambiguity, courts usually rule against the party that drafted the document, applying the rule of contra proferentem. This rule aims to promote clarity and fairness in contract drafting.
Step-by-step explanation:
Ambiguities in Contracts and Court Rulings
When a contract contains ambiguity, the court will often apply the rule of contra proferentem. This rule means that any ambiguity in a contract is construed against the party that drafted the document. The underlying principle is that the drafter of the contract is presumed to have had the opportunity to clarify any ambiguities but failed to do so. Therefore, in a legal dispute, the interpretation that goes against the interests of the party that created the contract is more likely to be adopted by the court. This is particularly relevant in cases where one party has significantly more power in drafting the contract, often seen in consumer contracts or employment agreements.
This principle encourages clarity and fairness in contract drafting and is one aspect of how courts strive to interpret the intent of the parties involved in a contract. However, different jurisdictions may apply additional principles or rules when dealing with contract ambiguities, so understanding the specific laws and precedents of the jurisdiction in question is crucial.
Knowing that severity of consequences, balance of power between the parties, and the presence of a jury's decision on the matter can influence a judge's ruling might compel individuals to ensure that contracts they enter into are as clear and unambiguous as possible.