What is the effect of an ambiguity in a contract?

An ambiguity in a contract can have a significant effect for both parties involved. In the state of Arizona, the courts will interpret an ambiguous term of a contract in favor of the party who did not draft the contract. This means that the court will look to the facts of the case and determine the most reasonable interpretation of the contract term. A court can also decide that an ambiguity in a contract renders the entire contract void. This means that both parties cannot rely on the terms of the contract and it will not be enforced. This can be a major setback for both the parties involved, as it could mean that any money or services that have been exchanged up to this point will need to be returned. In conclusion, ambiguity in a contract can have a significant impact for both parties involved. In Arizona, the courts will interpret the ambiguous term in favor of the party who did not draft the contract. They could also decide that the entire contract is void, which could mean that any money or services that have been exchanged up to that point will need to be returned. It is important to pay close attention to the language used in a contract, as it can have a large effect on both parties.

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