Chapter 7 - Terms Of A Contract

Question 1

1) Business Efficacy - to make the contract workable
2) Customs in the trade and transaction - this custom is so notorious that the contract is presumed to include that term
3) Previous dealings between the parties
4) Statutory Requirements

Answer 1

Grounds on which to imply terms

Question 2

Forbids any outside evidence on the terms of the contract when the language of the contract is clear and the contract is the sole source of agreement between the parties

Answer 2

Parol Evidence Rule

Question 3

1) Changed Circumstances
2) Conditional Agreements
3) Limitation of Liability Clause
4) Exemption Clause
5) Liquidated damages clause

Answer 3

Using contractual terms to manage risk

Question 4

1) Contracts should be enforceable as written, giving words their plain and natural meaning
2) Interpretation to the parties intentions
3) Look to external information to interpret the contract
4) Should pay a reasonable price for the goods or service provided (Quantum Meruit)

Answer 4

4 Rules of Construction