AFM231 Chapter 7: Chapter 7
13 Sep 2015
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Document Summary
Provision of a contract that states a promise explicitly. Essential terms so that both sides know their obligations. Court assigns reasonable meaning as possible with these terms. Any ambiguity drafted by the party will be construed (interpreted) against party in favour: drafter bears risk of unclear language. Unenforceable if too ambiguous to the point where you dunno what they"re saying anymore. Rules of construction: guiding principles for interpreting or constructing the terms of a contract often conflicting. On one hand court could rely on the plain, ordinary meaning of the words of the contract. Or they could also give effect to the parties" intentions. Both make sense alone, but together create conflict. When parties fail to address something important, the law may help fill in the blanks through implied terms. Provision that is not expressly included in a contract but that is necessary to give effect to the parties" intention.
