Standard Form of Contract

Contract

Standard form contracts - Bargaining power

Contract – Interpretation of - Standard form contracts - Bargaining power – There is no gainsaying that in a contract, the bargaining power is usually at equal footing - In this regard, the joint intention of the parties is taken into consideration for interpretation of a contract - However, in most standard form contracts, that is not so - In this regard, the Court in such circumstances would consider the application of the rule of contra preferatum, when ambiguity exists and an interpretation of the contract is preferred which favors the party with lesser bargaining power - Insurance - Commercial Vehicle Package Policy. #2020 SCeJ 69