What Happens if a Contract Term Is Left Blank?

A term left blank in a contract does not automatically equal a zero value, nor that the section is not part of the contract. Instead, a blank item would most likely be deemed ambiguous. When courts come across ambiguous language or terms in a disputed contract, the court may insert a reasonable term based on the facts and circumstances. If the parties cannot come to a resolution about what the term or value should be, a court would have to decide the value of that term for them.

To best protect the parties to the contract, all terms should be carefully reviewed and addressed. For example, if the paragraph says to check only one box, make sure only one is checked. Avoid leaving anything blank, and if a blank requires a dollar amount, don’t use market or TBD.

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