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Simple English definitions for legal terms
contra proferentem
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A quick definition of contra proferentem:
Contra proferentem is a rule that says if a contract has a confusing term, it should be understood in a way that is not good for the person who wrote the contract. This is especially important for contracts where one person has all the power and the other person can't change anything. The rule helps make sure that the person who wrote the contract is responsible for making it clear. This is really important for insurance contracts because they often have words that are not easy to understand. The rule helps make sure that insurance companies have to be clear about what they will and won't cover.
A more thorough explanation:
Contra proferentem is a legal rule that says if there is an unclear term in a contract, it should be interpreted against the person who wrote the contract. This rule is important in contracts of adhesion, which are pre-written contracts that one party must accept without any chance to negotiate.
For example, if a person signs a lease agreement that says they are responsible for "repairs," but the contract does not define what "repairs" means, the rule of contra proferentem would interpret "repairs" against the landlord who wrote the contract. This means that the landlord would be responsible for any ambiguity in the term "repairs."
The rule of contra proferentem is especially important in insurance law, where policies often have generalized terms that may be unclear. For example, if an insurance policy covers "water damage," it may not be clear whether damage caused by a rainstorm-induced mudslide is covered. The rule of contra proferentem encourages insurance providers to create specific lists of events that are excluded from coverage, which makes it easier for policyholders to understand what is covered.