Contracts are binding agreements, but ambiguities can lead to misinterpretation and disputes . The Supreme Court has consistently held that unclear contractual terms must be construed strictly against the party that drafted them , ensuring fairness and balance in legal agreements. Key Legal Doctrines on Contractual Interpretation 📌 Strict Interpretation Against the Drafter ✔ Courts prioritize fairness by holding the party responsible for ambiguity liable for misinterpretations. ✔ This prevents large corporations or dominant parties from unfairly manipulating contract terms . 📌 Extrinsic Evidence May Be Used to Clarify Ambiguous Contracts ✔ If a contract’s language is unclear , courts may examine external evidence such as the subject matter, relations between parties, and surrounding circumstances . ✔ Relevant Case: Heirs of Amparo del Rosario v. Santos (108 SCRA 43, 1981) 📌 Preference for Less Onerous Interpretations ✔ When ambiguity exists, courts prefer an inter...
Case Digests and Doctrines Simplified