Question

What approach will the courts take when faced with an express contractual term that is vague or ambiguous?

		The courts will first consider expert evidence to determine the most likely meaning of the term.
		The court will seek to assign as reasonable a meaning as possible to the vague or ambiguous terms by asking how a reasonable person would regard the term in question.
		The court will declare the contract unenforceable.
		The court will strive to replace the unclear term with a term that is equally fair to both parties.

Answer 1

The answer is: B). The court will seek to assign as reasonable a meaning as possible to the vague or ambiguous terms by asking how a reasonable person would regard the term in question.

A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation. Sometimes, this can mean that it's unclear as to what the parties intended overall. But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear.