Management and Organizational Studies 2275A/B Chapter Notes - Chapter 4: Condition Precedent, Clean Hands, Liquidated Damages

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

Document Summary

Disputes - may revolve around the existence of the contract, conduct of the parties at the time of negotiating, or performance of obligations under contract. Shared mistake (common mistakes) - lack of actual consensus where both parties are wrong in understanding. Parol evidence rule - requires that where the terms of the agreement are clear and unambiguous, no outside extrinsic evidence will be considered that contradicts those clear terms (there are exceptions though) Exemption clauses - provisions that favour one side, usually exempting or limiting the liability of that side for failure to perform some aspect of the contract: courts base their ruling on the principle of freedom of contract. If they object, any ambiguity will by interpreted at the expense of the party favoured by the clause. It must be clear, cover only the situations intended, and be capable of no other interpretation.