A Court Hearing a Contractual Dispute Has Determined That an Ambiguous

question 31

Multiple Choice

A court hearing a contractual dispute has determined that an ambiguous term must be construed against the party drafting the agreement.Which of the following would the judge most likely state in his decision as being the policy rationale for the court's finding?

• A) The common law rules of construction apply.
• B) The rules of construction require use of the best language available.
• C) Rules of construction require that a promise be stated explicitly.
• D) The framer should bear the risk of nebulous language.

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Definitions:

Corporations

Legal entities separate from their owners, created under state law, capable of conducting business, owning assets, and incurring liabilities.

Tort Theory

An area of law that deals with civil wrongs and damages caused by one party to another, not arising from contracts.

Deliberate

Intentionally considering or planning something.

Compensation

Payment or benefits provided to an employee or an individual for services rendered or as reparation for loss.