Management and Organizational Studies 2275A/B Chapter Notes - Chapter 8: Accounts Receivable, Accounts Payable, Parol Evidence Rule

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

Document Summary

If a written document does not reflect the common intention of the parties to the contract, the court will be willing to rectify the document. Example if the parties have agreed to the sale of land for and a clerical error states the price as on the contract the court will rectify that situation. The court will only do this if both parties are aware of that what they were agreeing to and what was written was different than the understanding. The courts will correct an improperly written agreement. When parties have a misunderstanding relating to the terms of agreement of the contract and either of them are aware of the situation. In this case the courts apply the reasonable person test to determine which interpretation is more reasonable. If the error is serious and both seem reasonable and the court cant decide which one is more reasonable the contracted will be labeled void.