You might have looked at a contract and seen the term “contra proferentem.” Terms like this are the reason that the legal industry is so complicated. It makes it harder for people to understand and creates jobs for lawyers. Sadly because of people always fighting, the law had to develop to cover as many possibilities as possible.
Contra proferentem means that the person who creates the agreement needs to be clear. If they are not clear, and there is a dispute, the other person’s position should be accepted. This is why it’s important to hire a lawyer as soon as you have a dispute. There are so many Latin terms that the average Canadian would have never heard of. You don’t want to lose your lawsuit just because you didn’t go to law school.
If you need a lawyer for a dispute anywhere in Canada, you can book a time for a lawyer to call you below. Let us know the area of law and which province you live in. For example, we can have a business lawyer in Vancouver call you. Or it could be a family lawyer in Toronto. Just let us know the type of lawyer that you need.
Contra Proferentem Clause
The clause is normally used when the two parties do not have the same size. For example, if there is a large company called ABC Company, and they enter into an agreement with Joe Smith, they are not equal-sized. The company might have 1000 people, and Joe Smith is only one person. There is an expectation that ABC Company could afford a business lawyer to create clear and concise agreements. If there a dispute, the judge might blame ABC Company for it. The person or company that created the agreement was in a position to cover all the possible disputes in the agreement. If they failed to do so, it might be their fault.
Contra proferentem is contract law and often takes place in business and insurance. When you are drafting the agreement, you better hire a business lawyer. If you make a mistake, it can cost you a ton of money. If you get sued and lose, you might have to pay the other companies’ legal costs. That could easily be $50,000.
So many people try to save money by not hiring a law firm. This often ends up costing them a lot more a few years later. Trying to save $2000 to end up paying $50,000 is a bad deal. You can watch videos about the law on our Youtube.
Author: Alistair Vigier is the CEO of ClearWay Law