Interpretation/Terms of the Deal

Question 1

The parties’ intent and purpose are given ______ by the court

Answer 1

great weight

Question 2

The court interprets the parties’ words and conduct ____

Answer 2

in light of the circumstances

Question 3

The court interprets all terms as having

Answer 3

reasonable, lawful, and effective meaning

Question 4

____________ are given greater weight than general language

Answer 4

Specific or exact

Question 5

_________ are given greater weight than standardized terms

Answer 5

negotiated or added

Question 6

A meaning that operates _________ (the party that supplied the terms of the contract) is preferred over other reasonable meanings

Answer 6

against the draftsman

Question 7

When a single contract involves repeated performances by either party, such as in an installment contract, the _______ between the parties (for example, acceptance of previous performance without objection) is strong evidence of the contract’s meaning

Answer 7

course of performance

Question 8

If the parties to a contract have engaged in similar transactions with one another in the past, the _______ between the parties may aid int he proper construction of the current contract

Answer 8

course of dealing

Question 9

The customs, practices, and other trade usages of a particular industry may be used to ______ an agreement between parties who regularly conduct business in the industry

Answer 9

clarify

Question 10

a term that is left open or uncertain

Answer 10

indefinite

Question 11

If the indefinite term is essential to the exchange, then the court will likely ___ the contract for indefiniteness

Answer 11

void

Question 12

If the parties intended to form a binding agreement then the court will

Answer 12

supply a customary or reasonable term and enforce the contract

Question 13

a term is ______ if multiple meanings lead to a misunderstanding between the parties

Answer 13

ambiguous

Question 14

an ambiguity may be ___ due to circumstances

Answer 14

latent

Question 15

an ambiguity may be __ due to language

Answer 15

patent

Question 16

If the parties understood different meanings of an ambiguous term, the court will interpret the term

Answer 16

against a party with knowledge of the misunderstanding at the time of the contract (if neither party knew of the misunderstanding, then the court will void the contract for lack of mutual assent

Question 17

A term is _____ if the parties have failed to provide for a given situation that subsequently aises

Answer 17

omitted

Question 18

The court will fill the gap in the contract when there is an omitted term by

Answer 18

supplying a term that is reasonable under the circumstances