Management and Organizational Studies 2275A/B Chapter 7: Law-Chapter 7

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

Document Summary

Terms of a contract are simply the promises made by one party to another by virtue of offer and acceptance. Express term: a provision of the contract that explicitly states one party"s promise to the other. The drafter of the contract therefore assumes risk of any unclear language. If language is so ambiguous the contract cannot be understood, then it will fail for uncertainty and will not be enforceable. How courts interpret contracts is difficult to predict because rules of construction (guiding principals for interpreting contracts) are often conflicting. The law may assist through implied terms (although this is sporadic and unreliable) Implied terms: provision not expressly included in a contract but is necessary to give effect to the parties" intention. Terms of a contract are simply the promises made by one party to another by virtue of. Express term: a provision of the contract that explicitly states one party"s promise to the.