The fundamentals and functions of Contra- proferentem Rule on Contract Law

Contra-Proferentem rule states that when a contract provision is vague, the court interoperates it against who has drafted the agreement and favorable to the other party. For years, this rule has been invoked and used in standard contracts. Therefore, the main challenge that we will cover in this article is rationales and applications of it in various areas of law. At the end of this study it is revealed that the rationales of the rule are: reducing the ambiguity in contracts, decreasing unfair terms and redistribution of wealth and its main function is to support the weaker party in standard contracts, asymmetric agreements and etc.; because today one-sided and standard contracts, on grounds of their advantages, are widely used by the stronger party, and deployment of this principle provides the possibility to modify the bargaining power of the parties.