Business Administration 2257 Chapter Notes - Chapter 7: Plain Meaning Rule, Condition Subsequent, Condition Precedent

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Danny Morrison

Document Summary

Express term: a provision of the contract that states or makes explicit one party"s promise to another. Essential terms of a contract must be expressed so that each party knows its obligations and the obligations of the other side. Vague or ambiguous language even when a term is express, there may be problems interpreting what it means because the language is vague or ambiguous. In cases where language is so ambiguous that the contract can"t it understood, it will fail for uncertainty and none of it will be enforceable. Rules of construction: guiding principles for interpreting or constructing the terms of a contract. When an event arises that is not addressed in the contract through express terms, courts may be asked to imply a term in order to give effect to the parties" intentions. Implied term: a provision that is not expressly included in a contract but that is necessary to give effect to the parties" intention.