Textbook Notes (368,448)
Canada (161,882)
Business (2,391)
BU231 (317)
Chapter 10

Chapter 10 - The Interpretation of Contracts.docx

3 Pages
38 Views
Unlock Document

Department
Business
Course
BU231
Professor
Shelley Mc Gill
Semester
Fall

Description
Chapter 10: The Interpretation of Contracts Meaning of a Contract - Plain meaning approach o An approach that restricts interpretation to the ordinary or dictionary meaning of the word - Liberal approach o An approach that looks to the intent of the parties and surround circumstances, and tends to minimize, but does not ignore, the importance of words actually used - Trade usage o A court may decide that the word was used in general rather than a special way o In general, the courts construe words most strictly against the party who has suggested them, in order to prevent him from being able to select, among two or more possible meanings, the one that turns out to be to his advantage - Contra preferentum o A rule of contract interpretation that prefers the interpretation of a clause that is least favorable to the party that drafted the clause  E.g. New CPA, in favor of consumer - Implied Terms o Reasonableness and customs  A court takes the position of the mythical reasonable person o Sales of goods act  Requires a written memorandum if above certain price  Caveat Emptor: Let the buyer beware  Implied conditions and warranties  Title  Description  Quality  Sample  Role of Exemption Clause o Exempts a party from liability  Follow the contra proferentem rule  Construe coverage provisions broadly  Interpret exclusion clauses narrowly Parol Evidence - Information about negotiations outside the written contract - Examples: earlier drafts of the contract, previous offers, letters, emails, phone messages - This is often used to prove misrepresentation, duress, mistake etc Parol Evidence Rule - A rule preventing a party to a written contract from later using parol evidence to add to, subtract from, or modify the final writing contract - This evidence may not be used to add a term to an existing written contract - Exceptions to the rule: o Written contact is not the entire agreement  Terms of a contract may be partly in writing an
More Less

Related notes for BU231

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit