Management and Organizational Studies 2275A/B Chapter Notes - Chapter 7: Drafter, Parol Evidence Rule, Condition Subsequent

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Express terms: provision of contract that states promise explicitly. Important that essential terms of contract be expressed so that each party knows its obligations and obligations of other side: parties negotiating should be careful not to make assumptions, only terms have legal weight. Vague or ambiguous language: may be problems interpreting what express terms mean b/c of language used, court assigns reasonable a meaning as possible to vague/ambiguous terms. Judge entitled to imply terms necessary to make contract workable: customs in trade of transaction. Relying on trade customs to imply term is rare successful. Must be proved that custom is so notorious that contract in question must be presumed to contain implied term: previous dealings between parties. May be possible to imply current contract contains same terms. Recommended that parties clarify basis of contractual relationship each time they do business: statutory requirements.