Management and Organizational Studies 2275A/B Study Guide - Condition Subsequent, Liquidated Damages, Parol Evidence Rule

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Terms contractual terms can be express or implied: express terms a provision of a contract that states or makes explicit one party"s promise to another. Vague or ambiguous language the policy rationale is that the drafter should bear the risk of unclear language. There is a point where language is so ambiguous that the contract will fail for uncertainty and none of the promises it contains will be enforceable. Rules of construction guiding principles for interpreting or constructing the terms of a contract, there are two methods: Plain meaning rule courts rely primarily on the plain meaning of the words the parties have chosen. Where one party doesn"t pay whatever the other party demands, but pays a reasonable amount determined by a judge. Contracts can take three possible forms: entirely oral terms are based on conversation, entirely written terms are contained in a written contract, both oral and written.