Give a brief note on Doctrine of contra proferentum

CS Professional · Insurance - Law and Practice · PYQS · December 2017
Give a brief note on Doctrine of contra proferentum

Answer & Explanation:

Doctrine of Contra Proferentum also known as "interpretation against the draftsman", is a doctrine of contractual interpretation providing that, where a promise, agreement or term is ambiguous, the preferred meaning should be the one that works against the interests of the party who provided the wording. The doctrine is not, however, directly applicable to situations where the language at issue is mandated by law. The reasoning behind this rule is to encourage the drafter of a contract to be as clear and explicit as possible and to take into account as many foreseeable situations as it can. Example: In insurance contracts, an individual usually has to accept all terms and conditions of insurance policy document framed by the Insurer Company with no liberty on part of the individual to negotiate or alter the conditions of the contract.

Topics: Principles of Insurance Law

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