Question

If a contract term is ambiguous a court can consider extrinsic evidence

a. True
b. False

Answer 1

If a contract term is ambiguous a court can consider extrinsic evidence. True. If there is a contract drawn up, it is important to make sure the terms and in black and white and not ambiguous. Ambiguous means that there can be more than one interpretation of something or having a double meaning. This can be harmful in a court case because different people may understand the contract differently. Extrinsic evidence is outside, external evidence that is not usually used to make a determination of a situation.

Answer 2

The correct answer is true. It is because if the contract term is likely ambiguous, the court will likely consider this as an extrinsic evidence or that the ambiguity is likely to be interpreted against the party who is responsible for drafting the term.