When a contract is ambiguous and the numbers written as words differ from the numerals, the principle that applies is:

In the context of contract law, ambiguity can arise when different forms of representation in a contract are not in agreement, particularly between written words and numerals. When there's a discrepancy between numbers written as words and those written as numerals, the principle that applies is that words take precedence over numerals.

This principle is upheld because words are generally considered clearer in expressing intent and meaning. For example, the written word can convey nuances and context that numerals alone cannot. In a legal setting, it is crucial to ascertain the intention of the parties involved in the contract, and words provide a more explicit form of communication in this regard.

In practice, if a contract states "Five thousand dollars" but also includes "5000" as the amount, the interpretation would favor the written form "Five thousand dollars." This principle helps minimize confusion and potential disputes that could arise from misinterpretation of numeric values. By prioritizing words over numerals, the intent behind the language used in the contract remains clear, thus maintaining the integrity of the agreement.

Understanding this principle is vital for individuals engaging in contract writing and interpretation, as it allows for greater clarity and reduces the chances of litigation over ambiguous contract terms.