Management and Organizational Studies 2275A/B Chapter Notes - Chapter 7: Plain Meaning Rule, Employment Contract

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

Document Summary

From a risk management perspective, a contract is a business tool that can be used to manage a business" exposure to liability. A provision of a contract that states a promise explicitly (ex. price, quantity, and warranties) Important essential terms are expressed so that each party knows it"s obligations. The court assigns a reasonable meaning to terms that are vague or ambiguous. If a contract has be drafted by one party, any vague or ambiguity will be assessed in favour of the other party. The drafter should bear the risk of unclear language. Rules of construction: guiding principles for interpreting or constructing the terms of a contract. Courts simply ask how a reasonable person would interpret the contract (plain meaning rule) Courts are to give e ect to the parties intentions. Implied terms- a provision that is not expressly inc;used in a contract but that is necessary to give e ect to the parties intention.