International Construction Law Review
THE CONTRA PROFERENTEM RULE AND STANDARD FORMS OF CONSTRUCTION CONTRACTS
A M NETTO, ALICE CHRISTUDASON AND GABRIEL KOR*
School of Design and Environment National University of Singapore
INTRODUCTION
Standard form contracts can be classified into two categories; negotiated contracts and contracts of adhesion. Negotiated contracts or industry contracts1
are prepared and revised jointly by a group that should reflect the interests of both
the contracting parties. Contracts of adhesion, on the other hand, are drawn up to represent solely the interests of one
party and put forward to the other on “take-it-or-leave-it” terms.2
In that sense, contracts of adhesion can also be referred to as unilateral contracts and are partisan documents which originate from and/or totally represent the interests of one party. Accordingly, the courts applied the contra proferentem
rule of construction to such one-sided contracts. By this rule, judges interpreted ambiguously worded clauses “against the proferens
”, i.e. against the persons who drafted or tendered the document.3
What is unclear about the application of the rule is, who
qualifies to be considered a proferens
within the rule. Would the proferens
have to (i) have sole control of the drafting or (ii) be the party in whose favour the contract had been drawn up, i.e. a contract of adhesion drafted by the proferens
, or could the rule also apply (iii) to a party who uses or tenders
a negotiated form of contract, or even for that matter, (iv) a party who relies
on a clause in either a contract of adhesion drafted against him or a negotiated contract tendered by the other party.
The contra proferentem
rule has also been applied to exclusion clauses generally in that such clauses are construed strictly against the party relying on them. In that regard, it has even been applied where there is no true
* Dr Anne Magdaline Netto is an Assistant Professor lecturing in Construction Law in the Department of Building; Dr Alice Christudason is an Associate Professor lecturing in the Law of Real Property in the Department of Real Estate; Gabriel Kor, a BSc (Building) graduate, is currently a Construction Litigation Executive with the law firm of Messrs Drew & Napier LLC, Singapore.
1 See Justin Sweet, “Confessions of a Law Teacher” [2001] ICLR 539.
2 D Yates, Exclusion Clauses in Contracts
(Sweet & Maxwell, 2nd ed., 1982) at p. 2.
3 The Hon Sir Anthony May, Adrian Williamson, John Uff, QC, Keating on Building Contracts
(1995) (Sweet & Maxwell, 6th ed., 1995) at p. 43.
[2002
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388