Contracts & ExecutionQuestion 857 of 1632
A contract term is 'ambiguous' when:
a.It is written in all capital letters
b.It is reasonably susceptible to more than one interpretation
c.It exceeds one page in length
d.It contains any technical construction terms
Explanation
A term is ambiguous when it is reasonably capable of more than one meaning, so that reasonable people could read it differently. Ambiguity, not mere length, capitalization, or the presence of technical terms, is what permits a court to consider extrinsic evidence to determine the parties' intent. Under the doctrine of contra proferentem, genuine ambiguities are often construed against the party who drafted the language.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)