What is the effect of an ambiguity in a contract?

An ambiguity in a contract is when there is a lack of clarity or certainty about the meaning of a certain term or phrase used in the contract. In Virginia, ambiguities are generally interpreted against the drafter of a contract. The effect of an ambiguity is that the contract will be interpreted in order to give effect to what the parties are likely to have intended when they drafted the contract. Courts will look at the language of the contract as a whole, using accepted principles of contract interpretation, in order to resolve any ambiguities. The impact of an ambiguity is that it could completely change the intended meaning of a contract. Ambiguities may create disputes between parties, which can lead to costly litigation. Ambiguities can also make contracts unenforceable, meaning that neither party can bring legal action in relation to the contract. It is important for parties to draft contracts as clearly and precisely as possible in order to avoid any ambiguities. If the parties are aware of an ambiguity, they should try to resolve the issue by amending the contract or by seeking legal advice. This will help ensure that the contract is legally binding and that the parties are aware of the implications of any ambiguities.

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