Question

Pick the true statement from the following:

• A. Unreasonable contract clauses are construed strictly.
• B. Contra proferentum is applied in case ambiguity exists in contract clauses.
• C. Rule of construction is one of the methods of ascertaining parties’ intention.
• D. All of the above are true

Hint:

Drafting clarity in contracts avoids reliance on interpretative rules like contra proferentum.

Answer 1

The Correct Option is D

Step 1: Unreasonable clauses.
Courts interpret unreasonable clauses strictly against the party relying on them — ensuring fairness.
Step 2: Contra proferentum rule.
When a clause is ambiguous, it is interpreted against the party that drafted it.
Step 3: Rule of construction.
This is a method to determine the real intention of the parties by interpreting contract language and context.
Step 4: Conclusion.
Since all three statements are correct, the answer is (d). \[ \boxed{(d)} \]