Legal Question in Business Law in Minnesota

Case law question on contract language

What does case law in MN have to say about the following purchase agreement language:

''total collections for work performed''

Does that mean all revenue taken in, including reimbursements for expenses like hotels and airfare


Does it mean only the collections taken in for work performed, excluding reimbursements? Thanks!

Asked on 12/17/00, 10:18 pm

1 Answer from Attorneys

Vincent W. King Vincent W. King, PA

Re: Case law question on contract language

I would have to see the entire contract and understand the transaction more completely to give a definitive answer...The phrase as written is inherently ambiguous. The term "total collections" by itself would indicate that all revenues, including reimbursable expenses, would be included; however, the term "for work performed" adds an ambiguity but seems to suggest that only payments for actual services/work are included.

In a situation like this, the court would want to look at the entire contract, and if that didn't resolve the ambiguity it might look at factors outside the contract to determine what the intent of the parties was.

Sorry I can't give a clearer answer, but the problem lies in the phrase itself.

Let me know if I can be of further assistance. In any event, good luck to you and best wishes for the Holidays!

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Answered on 12/22/00, 12:07 am

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