Management and Organizational Studies 2275A/B Chapter Notes - Chapter 7-9: Specific Performance, Contract Clause, Collet

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

Document Summary

The terms of a contract refer to the promises made by offer and acceptance. Contracts can be used to mange exposure to liability. A provision of the contract that states the promise explicitly. Essential terms should be express so each party knows their obligations. Parties should be careful not to make assumptions when negotiating a contract. Judicial interpretation of express terms (vague or ambiguous language) If the vague language does not make the existence for the contract doubtful the judge will assign it reasonable meaning. If the contract has been drafted by one of the parties any ambiguity will be interpreted against that party. The drafter bears the risk of unclear language. If language is so ambiguous the contract cannot be understood it will fail for uncertainty. Rules of construction guiding principles for interpreting or. Rules of construction are often conflicting and make it difficult to predict how the court will interpret.