In recent blogs we have made the point that the background and context of an agreement will be taken into account in the interpretation of an ambiguous provision.

Here are two quotes from US cases which have a neat approach to ambiguity:

  • “It is well settled that ‘[a] contract is unambiguous if the language it uses has a definite and precise meaning, unattended by danger of misconception in the purport of the agreement itself, and concerning which there is no reasonable basis for a difference of opinion.’” White v Cont’L Cas. Co.
  • “[An] ambiguity exists where the terms of an insurance contract could suggest more than one meaning when viewed objectively by a reasonably intelligent person who has examined the context of the entire integrated agreement and who is cognisant of the customs, practices, usages and terminology as generally understood in the particular trade or business.” Parks Real Estate, 172 F.3d at 42.