AFM231 Chapter Notes - Chapter 7: Contract Clause, Contractual Term

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Robert Timberg

Document Summary

Chapter 7 the terms of a contract: terms of contract refers to promises made by one party to another by virtue of offer and acceptance, contractual terms can be express or implied. Express terms: express term a provision of a contract that states a promise explicitly. Sometimes language could still be vague or ambiguous: policy rationale is that drafter of contract should bear the risk of unclear language. Implied terms a provision that is not expressly included in a contract but that is necessary to give effect to the parties" i(cid:374)te(cid:374)tio(cid:374). In classic scenario, the plaintiff argues to include an implied term but the defendant asserts that no such term was intended. The parol evidence rule: contracts can take 3 possible forms, entirely oral, entirely written, both oral and written, parol evidence rule a rule that limits the evidence a party can introduce concerning the contents of the contract.