MCS 3040 Chapter Notes - Chapter 7: Parol Evidence Rule, Estoppel, Ghermezian Family

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

The content of a contract: the terms of a contract simply refer to promises made by one party to another by virtue of offer and acceptance. From a risk management perspective, a contract is a business tool that can be used to manage a business"s exposure to liability. Terms: contractual terms can be express or implied. It is important that the essential terms of a contract be express so that each party knows its obligations and the obligations of the other side. Parties negotiating a contract should be very careful not to make assumptions about any aspect of the transaction, as only terms, not assumptions, have legal weight. The court simply asks how a reasonable person would regard the term in question and can refer to dictionaries, legal reference materials, and cases that have considered such terms in the past. On the other hand, courts are to give effect to the parties intentions.