BUSI 2601 Chapter 7: Chapter-7

• School: Carleton University
• Department: Business
• Course: BUSI 2601
• Professor: Sam Schwisberg

Document Summary

From a risk management perspective, a contract is a business tool that can be used to manage a business" exposure to liability. Express term: a provision of a contract that states a promise explicitly. Implied terms: a provision that is not expressly included in a contract but that is necessary to give effect to the parties" intentions. The plaintiff need to prove that it is more likely than not that the parties intended such a term to be included. A judge is entitled to imply terms necessary to make the contract workable. Relying on trade customs to imply a term is rarely successful, since it must be proved that the custom is so notorious that the contract in question must be presumed to contain such an implied term. If parties have contracted in the past, it may be possible to imply that their current contract contains the same terms.