How does Texas law treat ambiguous contract terms?

Under Texas law, ambiguous contract terms are interpreted against the drafter of the contract. This principle arises from the idea that the party who drafted the contract had the opportunity to clarify the language and should bear the consequences of any ambiguities that may arise. This doctrine promotes fairness in contractual relationships, encouraging drafters to use clear and precise language to reduce the potential for misunderstandings.

When a contract contains terms that are susceptible to more than one reasonable interpretation, the courts will favor the interpretation that is less favorable to the party that drafted the contract. This helps protect the interests of the other party, who may have relied on the conventional meanings of the ambiguous terms.

In contrast, if courts were to ignore ambiguous terms, the parties would be left without guidance on how to proceed, which would undermine the purpose of the contract. Saying that ambiguous terms are automatically rendered invalid does not align with the intention of enforcing contracts as valid agreements between parties, while asserting that such ambiguity requires a jury to determine intent could also lead to unnecessary escalation of disputes that might be resolved through judicial interpretation. Therefore, interpreting ambiguities against the drafter is the most appropriate method for enforcing and upholding the terms of a contract under Texas law.