Chapter Twelve - Contract Interpretation

Question 1

ADR

Answer 1

Alternative dispute resolution

Question 2

Construction (Rules of)

Answer 2

Rules that are applied to resolve contract disputes and to determine parties’ intentions

Question 3

Defined Term

Answer 3

Shorthand way of referring to a person, place, thing, or event that might otherwise require a lengthy description

Question 4

Recitals

Answer 4

Short statements that provide background or explain the reasons for the contract; not technically part of a contract

Question 5

Incorporation by Reference

Answer 5

A reference to an outside document, making that document part of a contract

Question 6

Notary Public

Answer 6

Person authorized by state to administer oaths, certify documents, attest to the authenticity of signatures, and perform other official acts

Question 7

Record

Answer 7

To record a document is to file it with the official charged with keeping documents such as deeds and judgments

Question 8

Self-proving Document

Answer 8

Complies with formalities and can serve as a testimony in court

Question 9

Parol Evidence Rule

Answer 9

A writing, intended by the parties to be a final embodiment of their agreement, cannot be modified by evidence that adds to, varies, or contradicts the writing

Question 10

Integrated

Answer 10

Final and complete agreement

Question 11

Merger Clause

Answer 11

Contract provision stating that the document is the complete and final statement of agreement

Question 12

Subsequent Agreement

Answer 12

A separate, later agreement that changes or modifies the original agreement

Question 13

Boilerplate

Answer 13

“Standard” contract language used in many contracts without adaptation to individual circumstances