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What happens when a contract contains ambiguous or contradictory language?

Wendy Ryman

When a contract has words that can be understood in different ways, it is called "ambiguous" language. This can cause problems if the people who made the contract disagree about what the words mean. It can also lead to mistakes or confusion.

For example, imagine two friends agree to sell a bike for $100, but the contract they wrote includes the words "plus any additional fees." This is an ambiguous phrase, because it is not clear what kind of fees might be included. Does it mean shipping fees? Transaction fees from PayPal or another payment platform? The friends might have different ideas about what the phrase means, which could cause trouble later.

Another problem that can happen is when a contract contains "contradictory" language. This means that two parts of the contract say different things or don't match up. For example, a contract might say that a car is being sold "as is," but then include a section about a warranty. The warranty would contradict the "as-is" statement, because it suggests that the seller is guaranteeing something about the car's condition.

When a contract has ambiguous or contradictory language, it is important to try to clear up the confusion before signing it. This might mean asking questions or getting help from a lawyer or other expert. If the contract is already signed, it can be harder to fix any problems that come up later. Sometimes the people involved will need to go to court to figure out what the contract really means.

In the end, the most important thing is to make sure that everyone involved understands the contract's language clearly. This can help prevent problems and disagreements down the road.