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Ambiguity of Contract Is a Question of Fact Where Credibility of Extrinsic Evidence Must Be Assessed

The First Department determined there was question of fact whether defendant signed a note in his personal as well as corporate capacity. The court explained the relevant analysis where a contract is ambiguous:

A contract is ambiguous if “on its face [it] is reasonably susceptible of more than one interpretation” … . The determination whether a contract is ambiguous is a question of law for the court … . If the court deems a contract ambiguous, it may consult extrinsic evidence to resolve the ambiguity … . However, where “the determination of the parties’ intent depends upon the credibility of extrinsic evidence or a choice among inferences to be drawn from extrinsic evidence, then the issue is one of fact” … .  Chen v Yan, 2013 NY Slip Op 05957, 1st Dept 9-24-13

 

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