Oregon Construction Contractors (CCB) Practice Test

Is it acceptable to use technical terminology in contracts between knowledgeable parties? True or False?

1. True

2. False

The correct answer is: True

Using technical terminology in contracts between knowledgeable parties is acceptable because both sides possess the expertise necessary to understand the specific terms and language being used. This precision in language can help clarify responsibilities, obligations, and expectations, reducing ambiguity and the potential for disputes. In contexts where both parties have a shared understanding of the trade or industry-specific terms, the inclusion of such terminology enriches the contract by making it more precise and accommodating to the specific needs of the parties involved. This practice also reflects a mutual recognition of the complexities and nuances of their business, enhancing communication and understanding. This approach does, however, necessitate that both parties are indeed well-informed and competent to interpret those technical terms, reinforcing the importance of clear communication in any contractual arrangement.