Management and Organizational Studies 2275A/B Chapter Notes - Chapter 7: Judicial Interpretation, Liquidated Damages

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

Document Summary

Contractual terms can be express or implied. Judicial interpretation of express terms vague or ambiguous language. Even when a term is express, there may be problems interpreting what it means because the language is vague or ambiguous. The court assigns as reasonable a meaning as possible to vague or ambiguous terms. One of the parties could construct the contract in their favour with ambiguous language. There is a point at which language is so ambiguous that the contract cannot be understood. In these cases, the contract will fail for uncertainty, and none of the promises it contains will be enforceable. Rules of construction: guiding principles for interpreting or. The court simply asks how a reasonable person would regard the term in question. When parties fail to address an important aspect of their contractual relationship, the law may help to fill in the blanks through implied terms.