What is the effect of an ambiguity in a contract?

When there is an ambiguity in a contract, it can have several effects. In California, an ambiguity is defined as any language used in the contract that is reasonably open to more than one interpretation. When an ambiguity exists, the terms of the contract may not be enforceable. A party to the contract can argue that because the language is ambiguous, it is not enforceable. This would mean that the other party cannot enforce their rights under the contract. This could mean that an entire contract is void or certain clauses can be voided. Also, if a dispute arises over the meaning of a contract, and ambiguity is present, a court may interpret the ambiguous language in a way that favors the non-drafting party. This is because the court believes that the drafting party had the opportunity to be more precise with their language, but did not. In general, ambiguities should be avoided in contracts so that the parties to the agreement can feel comfortable and secure that their rights will be upheld in the event of a dispute. In order to avoid an ambiguity in a contract, both parties should make sure to read the document carefully and to fully understand its terms. Additionally, both parties should hire a legal professional to review the contract before signing it, as they would have the experience and knowledge to identify any ambiguities.

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