Ambiguity in Contract

Ambiguity in Contract

Ambiguity in Contract

Patent ambiguity appears on the face of the document, while latent ambiguity emerges when the language is applied to the facts. A finding of ambiguity permits extrinsic evidence of intent and typically defeats summary judgment.

Whether ambiguity exists is a question of law.

Alternative Names:

Contract Ambiguity|Ambiguous Term

Why it Matters?

Establishing ambiguity is frequently the entire summary judgment contest, since an unambiguous contract is interpreted by the court as a matter of law while an ambiguous one presents a fact question for trial. That makes the ambiguity argument the plaintiff's route past dispositive motion and the defendant's target. Courts also reject strained readings, requiring that both proposed interpretations be reasonable rather than merely possible.

Frequently asked questions

Why does ambiguity determine summary judgment?

What standard applies?