A court hearing a contractual dispute has determined that an ambiguous term must be construed against the party drafting the agreement. What is the policy rationale for the court's finding?
A) The common law rules of construction apply.
B) The rules of construction require the best language available be used.
C) The rules of construction require that a promise be stated explicitly.
D) The framer should bear the risk of nebulous language.

Question

Quizplus · Accepted Answer

The policy rationale for construing an ambiguous term against the party drafting the agreement is that the drafting party is in the best position to avoid using unclear or imprecise language in the contract. Therefore, the court will shift the risk of any ambiguity or uncertainty to the drafting party rather than the other party who did not have the opportunity to clarify or negotiate the language. This approach incentivizes parties to draft clear and unambiguous language and discourages the inclusion of vague or ambiguous terms.

A Court Hearing a Contractual Dispute Has Determined That an Ambiguous