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

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

Document Summary

Promises made by one party another by virtue of offer and acceptance. Express terms: a provision of a contract that states a promise explicitly. Essential term of a contract should be expressed so each party knows its obligations and the obligations of the other side. If existence of contract is not in doubt, court will assign reasonable meaning. If contract has been drafted by one party, it will be interpreted in favour of the other. Policy drafter should bear the risk of unclear language. If language is so vague that the contract cannot be understood, it will fail altogether for uncertainty none of the promises will be enforceable. When parties fail to address important aspects of their contractual relationships, law helps to fill in the blanks through implied terms. Implied terms: a provision that is not expressly included in a contract but that is necessary to give effect to the parties intention.