Contra Proferentem
Ambiguous contract language is interpreted against the party who wrote it.
Plain English
Contra proferentem is a rule that protects the weaker party in a contract. When contract language is genuinely ambiguous—meaning it could reasonably mean two different things—courts interpret it in the way that favors the party who didn't write it and against the party who did. The idea is that the drafter had the power to write clearly, so if they didn't, they should bear the cost of the ambiguity.
Example
An insurance company's policy says it covers "accidents and sudden events." If a court finds this phrase ambiguous, it will interpret it in the policyholder's favor rather than the insurance company's favor, because the insurance company wrote the policy.
Used in a sentence
“Because the contract was ambiguous, the court applied contra proferentem and ruled in favor of the party who did not draft it.”
Related terms
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.