An uncertainty of meaning or intentions in contracts or statutes.
An ambiguous term is one that has two or more meanings. There cannot be ambiguous terms in a contract because there is no way to determine the intent of the term. Ambiguities are determined when the entire contract is read, but the meaning of a term cannot be determined without more information. If two or more meanings can be read in a contract term without further information it is an ambiguous term and is not permitted in a contract. When drafting a contract, it is important to read the entire document and make sure that the contract speaks for itself and does not need any additional information to determination the meaning of the contract. Each term should only have one interpretation within the document itself.