BU231 Chapter Notes - Chapter 10: Parol Evidence Rule, Contra Proferentem, Collateral Contract
Document Summary
Plain meaning approach: an approach that restricts interpretation to the ordinary or dictionary meaning of the word. Liberal approach: an approach that looks to the intent of the parties and surround circumstances, and tends to minimize, but does not ignore, the importance of words actually used. Contra preferentum: a rule of contract interpretation that prefers the interpretation of a clause that is least favorable to the party that drafted the clause. A court takes the position of the mythical reasonable person: sales of goods act. Requires a written memorandum if above certain price. Role of exemption clause: exempts a party from liability. Examples: earlier drafts of the contract, previous offers, letters, emails, phone messages. This is often used to prove misrepresentation, duress, mistake etc. A rule preventing a party to a written contract from later using parol evidence to add to, subtract from, or modify the final writing contract.
