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CS Professional · Drafting, Pleadings and Appearances · Types of Documents

Meridian Traders Pvt Ltd signed a supply agreement with Kaveri Agro. Clause 5 states the price is 'Rs. 2,40,000 (Rupees Two Lakh Forty Thousand only)'. In the schedule the same price is typed as Rs. 2,04,000. Applying the usual rule of interpretation for conflicting figures and words, which amount will ordinarily prevail?

Rs. 2,40,000 prevails. When a document states an amount in words and a different amount in figures, courts ordinarily prefer the words, since figures are more easily mistyped or altered. The conflict can therefore be resolved, and the contract is not void.

  1. ARs. 2,04,000, because the schedule is more detailed
  2. BRs. 2,40,000, because words generally prevail over figuresCorrect
  3. CThe average of the two amounts
  4. DNeither; the contract is void for uncertainty

Explanation

Under the usual rule of construction, where words and figures conflict, the words are preferred because they are less prone to typing error. The schedule figure is a numeral, so it yields. Treating the contract as void is wrong because the ambiguity is resolved by the rule.

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