Exam 10: The Interpretation of Contracts

A is employed by B as a truck driver.C is A's partner,and they go on deliveries together.One day,while backing up the truck,A drives negligently and injures C.C successfully sues B on the basis of vicarious liability.In a law suit by B against A,

What is the plain meaning approach to the interpretation of contracts? What are the limitations of this approach?

What are some of the primary goals of a court in interpreting a contract?

From the point of view of risk management,what conclusion about the clarity of form of a contract would you suggest arises out of your reading of this chapter?

Is not implying terms in a contract contrary to the rule that the function of the court is not to write or rewrite the contract for the parties?

To determine the ordinary meaning of words in a contract,the court will consider

As far as managing legal risks,what strategies can contracting parties adopt to reduce the risk of encountering disputes with respect to the interpretation of the contract?

A and B are negotiating a contract by faxes going back and forth between them.During their negotiations,they agree on the subject matter of the contract,the price,and the date of performance.However,both agree that once the negotiations are complete,a formal written contract will be prepared and signed.In this situation,

A makes a contract under which B Company is to repair and repaint A's pier.Under the contract,A has the right to specify the materials to be used.B Company induces A to specify the use of a particular paint that it made,giving A assurances of its quality.The paint is supplied by B Company,but it is found to be unsuitable,and A has to spend $40 000.00 to correct the matter.In a lawsuit by A against B,

A and B enter into a lease whereby A is to lease a unit in a plaza from B to be used as a retail men's clothing store.When the lease is drawn up and signed,it simply says that A is leasing the unit as a store.A now takes the position that he can have any kind of store and decides to rent out videos and DVDs,just like the Video and DVD store already in the plaza.In this situation,

Mercantile Limited,a corporation in Toronto,enters into an agreement with Jackson to advance $300 000 to Jackson for the purchase of farming equipment.Jackson agrees to give Mercantile Limited a mortgage over his home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Jackson's home of at least $350 000.The appraisal provision is known as an appraisal warranty.

Conditions precedent can be enforced if they are oral.

Generally speaking,the parol evidence rule is hard and inflexible.

When a condition precedent is not satisfied,the contract ceases to exist.Explain.

In choosing between conflicting testimony,a court will

Allen was negotiating to rent a flat in Bob's house.During the negotiations,Allen told Bob that if he took the flat,he would have use of two basement rooms for the storage of his surplus furniture and also the use of the garden.Subsequently,a written agreement was drawn up for the lease of the flat that made no reference to either the storage rooms or the garden.In this case,

Which of the following is NOT true?

Mercantile Limited,a corporation in Toronto,enters into an agreement with Jackson to advance $300 000 to Jackson for the purchase of farming equipment.Jackson agrees to give Mercantile Limited a mortgage over his home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Jackson's home of at least $350 000.The appraisal provision is known as

A court will sometimes recognize the existence of an implied term from discussions that the parties had prior to entering into the contract.

A agrees to paint B's house.B then says to A,"If you paint my house,I'll give you $500.00." In this situation,