Misinterpretation is a crucial area of contract law that examines the effects of incorrectly communicating the terms and intentions of a contract between the parties. This abstract explores the reasons for misinterpretations of contractual agreements, their effects, and the possible legal remedies to deal with them. The research examines a number of misinterpretation-causing elements, such as confusing language, cultural differences, and poor communication. It also looks at how misunderstanding affects the creation and execution of contracts, resulting in disagreements, violations, and challenges to the enforceability of contracts. Contractual disagreements brought on by misunderstandings may be time-consuming, expensive, and harmful to the relationship between the parties. The principles of contra proferentem interpreting ambiguous terms against the party who included them and rectification correcting errors in the written contract to reflect the parties' true intentions are just a couple of the possible solutions explored in this abstract to address these problems.