Rule when the contract is so ambiguous or obscure
Citation: 739 SCRA 735 at 755-756 Ambiguities or obscurities must be strictly interpreted against the party that caused them. This rigid application of the rule on ambiguities has become necessary in view of current business practices. The courts cannot ignore that nowadays monopolies, cartels and concentration of capital, endowed with overwhelming economic power, manage to impose upon parties dealing with them cunningly prepared ‘agreements’ that the weaker party may not change one whit, his participation in the ‘agreement’ being reduced to the alternative to ‘take it or leave it.’ (Fieldmen’s Insurance Co. Inc. v. Vda. de Songco, 25 SCRA 70 [1968]) Where the written contract is so ambiguous or obscure in terms that the contractual intention of the parties cannot be understood from a mere reading of the instrument , extrinsic evidence of the subject matter of the contract, of the relations of the parties to each other and of the facts and circumstances surrounding them when they ente...