Misunderstandings about the meaning of words
What will happen when misunderstandings about the meaning of words?
Expert
When the parties to a contract put differing interpretations on words correctly recorded in agreement, court will seek to arrive at and enforce the most reasonable elucidation. In exceptional circumstances everywhere interpretation is more reasonable than the other and the words form a major term of the agreement, court will seize that no contract had been formed.
In the case of standard form of agreement, if an indistinct agreement is held to be enforceable because contra proferentum rule would result in the courts using the meaning that is slightest favourable to the author.
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