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What constitutes vagueness in a contract

On Behalf of | May 29, 2023 | Business Law |

The parties you work with should sign contracts. These agreements will protect you and them, outline how you will work, and provide conflict-resolution methods, among other benefits. Nonetheless, disputes can arise from these agreements due to different reasons, including vagueness.

This guide discusses what constitutes vagueness in a contract:

Statements that can be interpreted in more than one way

If a statement in your contract can be interpreted in different ways, it may be vague. For example, stating that a task should be completed within a “reasonable time” or without “undue delay” can be confusing. One may understand that they should complete it within hours and another before a week.

You should be specific in your contract. If a supplier should deliver goods within 72 hours, state so.

Another aspect that can lead to vagueness is definitions. Some words have different meanings, depending on the context. Therefore, it can be easier for them to be misinterpreted. If you use such phrases, give the intended meanings at the beginning of the contract.

No way of deciding what should be done

Your contracts should provide clear information on what each party is required to do. Using uncertain words that make a party you are going into business with wonder what they will be doing is stressful. One should understand their roles in-depth after reading the contract.

Typos and grammatical errors

Not only do typos and grammatical errors negatively impact the quality of a contract, but they can also lead to misunderstandings. It can be confusing to read a contract with sentences that are difficult to understand.

Vagueness in a contract can lead to breaching and, in turn, you may incur losses. It’s often crucial to get legal help to ensure your agreements are clear and binding.