Chapter 8

Question 1

ambiguous contract term

Answer 1

A contract term capable of multiple interpretations

Question 2

parol evidence rule

Answer 2

: A common law rule of evidence in which a judge is prohibited from hearing evidence that the parties intended a meaning different than what is indicated in the clear language of the written contract

Question 3

contra proferentem doctrine

Answer 3

: A rule of contract interpretation in which a judge interprets an ambiguous contract term in the manner most favourable to the party that did not draft the contract

Question 4

expressed contract terms

Answer 4

Terms of a contract that the parties have explicitly agreed to, either orally or in writing

Question 5

ancillary contract terms

Answer 5

Terms found in secondary documents, such as human resource policy manuals or employee handbooks, that have been incorporated into an employment contract by agreement of the employer and employee

Question 6

implied contract term:

Answer 6

A default contract term invented by common law judges and read into an employment contract when the written terms of the contract (if any) do not address the specific issue addressed by the implied term

Question 7

restrictive covenant

Answer 7

A contract term that restricts the right of a former employee to engage in certain competitive practices against his or her former employer

Question 8

public policy illegality:

Answer 8

A common law right of judges to void all or part of a contract because it is contrary to public policy

Question 9

wrongful dismissal:

Answer 9

A type of lawsuit by an employee against a former employer alleging that the employer terminated his or her contract without complying with the implied term in the contract requiring “reasonable notice . ”

Question 10

repudiation of contract:

Answer 10

A breach of contract that demonstrates an intention by the party to treat the contract as at an end and no longer be bound by the contract

Question 11

fixed-term contract:

Answer 11

A contract with a specific defined end date .

Question 12

fixed-task contract:

Answer 12

A contract to perform a defined task that comes to an end when the task is complete

Question 13

indefinite term contract:

Answer 13

A contract that has no specified end date .

Question 14

“at will” employment contract:

Answer 14

An employment contract in which either party may terminate the contract at any time, for any or no reason, with no notice to the other party . This is the default model in the United States . In Canada, employment standards legislation requires notice of termination and therefore prohibits at will contracts for employees covered by the legislation

Question 15

ancillary documents:

Answer 15

Written materials that are physically separate from an employment contract but that include rules that relate to the employment relationship . Examples include employee handbooks, benefits handbooks, and human resource policy manuals