Management and Organizational Studies 2275A/B Chapter Notes - Chapter 7: Condition Subsequent, Sanitary Sewer, Parol Evidence Rule

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

Document Summary

A provision of a contract that states a promise explicitly. Its important that the terms of a contract be expressed so that each party knows its obligations and the obligations of the other side. Parties negotiating a contract should be careful not to make assumptions about any aspect of the transaction. There may be problems interpreting what it means because the language is vague an ambiguous. The court assigns as reasonable a meaning as possible to vague or ambiguous terms. If the contract has been drafted by one of the parties, any ambiguity in language will likely be constructed against that party in favour of the other. There is a point at which the language is so ambiguous that the contract cant be understood, in this case the contract will fail for uncertainty and none of the promises it contains will be enforceable. Rules of constriction: guiding principles for interpreting or constructing the terms of a contract.