The legal landscape is marred by the complexities of language, especially in the drafting and interpretation of contracts. The importance of clarity and absence of ambiguity cannot be stressed enough. Building on Sanford Schane's work on linguistic ambiguities, this paper explores the legal necessity of ensuring clarity in contracts. It further examines the emerging role of Artificial Intelligence (AI) in analyzing contracts for potential ambiguities, arguing that their use is highly recommended, if not essential, in contemporary legal practices.
Contracts form the backbone of legal transactions. Sanford Schane's work on categorizing linguistic ambiguities highlights the myriad ways contract language can be unclear, thereby leading to disputes. The imperative, then, is not only for legal professionals to be vigilant but also to leverage available technology to enhance contract clarity. Our tool is an indispensable tool in this regard, offering a more thorough and nuanced analysis of potential ambiguities.
Legal Consequences of Ambiguity
Ambiguous terms can be leveraged by parties to argue non-performance or partial performance, thereby increasing the risk of breach of contract claims. Judicial interpretation of ambiguous clauses is unpredictable, adding a layer of uncertainty and risk in legal matters. Failure to foresee and address ambiguity can reflect poorly on legal counsel and affect future client relationships.
The Strategen Contract Analytics Advantage
With our service, using the very latest in cutting-edge AI, we can scan hundreds of pages within minutes to identify potential lexical, syntactic, or referential ambiguities, thereby enhancing the efficiency of legal and procurement processes. Never has this power been available to the frontline manager of a project.
Our AI algorithms maintain a consistent interpretation based on textual databases, which can be invaluable for standard contracts used across multiple jurisdictions. We report on instances of ambiguity, explain why, and provide a recommended fix, helping your team anticipate how a particular ambiguous term could be interpreted by courts and potential risk and costs.
As Sanford Schane's research underlines, the presence of ambiguity in legal contracts can have dire consequences, including litigation, financial loss, and reputational damage. Given the rapid technological advancements, the utilization the services like ours is becoming crucial in legal contracts for identifying and resolving these ambiguities.
References
Schane, Sanford. "Ambiguity and Misunderstanding in the Law." UCSD. Link to paper
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