BLAW 150 Lecture Notes - Lecture 6: Contra Proferentem, Forego
Document Summary
(ii) misunderstandings about the meaning of words when the parties to a contract put differing interpretations on words correctly recorded in the contract, the court will try to arrive at and enforce the most reasonable interpretation. In the very rare situation where neither interpretation is more reasonable than the other, and the words form a major term of the contract, the court will hold that no contract had been formed. In the case of standard form contracts, if a vague contract is held to be enforceable, the contra proferentum rule would result in the courts using the meaning that is least favourable to the author. Mistaken assumptions mistaken assumptions can be defined as mistakes concerning a matter relevant to the decision to enter into a contract. The court will grant relief only when it decides that the party adversely affected should not be the one to bear the risk. The injured party may be allowed to repudiate the contract.
