Exam 11: The Interpretation of Contracts

One approach that the courts adopt to interpret the provisions of contracts is to determine the most reasonable interpretation of express terms. Where this cannot be done, the second approach

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

A clause in a contract that makes a contract enforceable against a buyer if the buyer is able to obtain financing is

An implied term is

When parties deal expressly with a matter in a contract, a court is not precluded from finding an implied term regarding that same matter.

Which of the following is not true?

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

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

The parol evidence rule permits evidence of oral contracts entered into between the parties after they enter into a written agreement.

A condition precedent is one of a series of conditions that are discussed by the parties prior to the entering of a contract.

When a person goes to court to have a provision of a contract interpreted, the court will

The liberal approach to interpretation is

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

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

The parol evidence rule excludes evidence about the formation of a contract.

The parol evidence rule does not permit evidence of oral contracts entered into between the parties before they enter into a written agreement.

A business contract includes a term saying that a manufacturer will use "smooth grained sand" in a construction project "if this quality is available. The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials. This is an example of the court

A business contract includes a term saying that a manufacturer will use "smooth grained sand" in a construction project "if this quality is available. The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials. This is an example of the court introducing an implied term based on

The plain meaning approach to interpretation is

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