Chapter 7 Flashcards
What is an Express Term?
Provision of a contract that states a promise explicitly
What are the Rules of Construction?
Guiding principles for interpreting of “constructing” the terms of a contract
What is the Plain Meaning Rule?
Additional information will be disregarded, simply say it wasn’t in the contract
What are Implied Terms?
Provision that is not expressly included in a contract but that is a necessary to give effect to the parties intention, need to prove that parties intended such term to be included
What is Business Efficacy?
Judge is entitled to imply terms necessary to make contract workable, courts are increasingly willing to imply good faith
What is Customs in Trade of Transaction?
Relying of trade to imply terms is rarely successful, must prove custom is so notorious that contract must be presumed to contain implied term
What are Statutory Requirements?
Legislation requires that certain terms are mandatory part of every contract for the sale of goods unless specified
What is a Entire Contract Clause?
Their contract is complete as written and to only base on what is in the contract
What is Parol Evidence Rule?
Rules that limits the evidence a party can introduce concerning the written contract, evidence considered: fraud in formation, intended to be part oral and part written
What is a Condition Subsequent?
When it occurs, brings an existing contract to an end
What is a Condition Precedent?
Until it occurs, suspends the parties’ obligations to perform their contractual obligations
What is the Limitation of Liability?
Term of a contract that limits the liability for breach to something less than would be recovered
What is the Exemption Clause?
Term of contract that identifies events causing loss for which there is no liability
What is the Liquidated Damages Clause?
Specifies how much a party has to pay to the other in the event of breach
