Interpreting Contracts: The Importance of Language Precision

Kato Nabirye H. and Asiimwe Kyomugisha T.

Faculty of Business, Kampala International University, Uganda

ABSTRACT

Contracts are integral to modern economic and social systems, providing a structured framework for agreements. However, disputes often arise from ambiguous or imprecise language, necessitating robust principles of interpretation in contract law. This paper examines the critical role of language precision in drafting and interpreting contracts, addressing key concepts such as clarity, ambiguity, and contextual meaning. Through analysis of legal theories, case studies, and practical tools, the paper underscores the implications of precise drafting on reducing litigation risks and fostering equitable enforcement. It also examines emerging trends, including the integration of AI and data analytics to enhance contract clarity, positioning these advancements as transformative for future legal practice.

Keywords: Contract interpretation, language precision, ambiguity, legal drafting, litigation risk.

CITE AS: Kato Nabirye H. and Asiimwe Kyomugisha T. (2025). Interpreting Contracts: The Importance of Language Precision. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 4(1):1-4. https://doi.org/10.59298/RIJCIAM/2025/411400