Exam 7: The Terms of a Contract

Justice Hall listened to plaintiff's counsel argue his client's position relating to a contractual dispute.Counsel stressed that an unstated provision was relevant to the contract and necessary to give effect to the contractual objectives of the parties.If Justice Hall accepts counsel's argument,how will she proceed?

Kramer and Biff entered into a formal purchase and sale agreement with respect to Kramer's house.Two weeks later,Biff revisited Kramer and offered to purchase all of Kramer's custom yard and deck furniture too.The price Biff offered was $2500 more than the last offer Kramer had received,and he accepted the offer.In these circumstances,if a dispute ensues,will the parol evidence rule play a role?

What type of contractual condition is the statement "I'll buy your horse if he decides he likes me" an example of?

A browse-wrap licence instructs the user to review the terms prior to assenting by clicking an "I accept" icon,and the user typically cannot proceed any further without agreeing to the licence terms.

Why would a businessperson use contractual terms as a planning feature of the law?

When a court must apply the principles of the rules of construction,it may come to a conclusion simply by asking how a reasonable person would interpret the terms.

Which of the following is characteristic of a shrink-wrap agreement?

Identify and briefly explain the circumstances in which a court will imply a term where that term is alleged to have not been addressed in the contract as an express term.Identify and briefly describe the classic courtroom scenario that would be presented to a judge hearing such a case.Provide a brief explanation as to which party in the suit would bear the burden of proof.

Contractual quantum meruit requires a customer to pay whatever the supplier chooses to charge or whatever the market will bear.

The question of validity of browse-wrap agreements can be avoided entirely by requiring customers to take affirmative action to signify assent.

Why is a reference in a contract to "best quality" considered to be nebulous?

Which of the following allows a judge to imply terms in a contract in order to make it workable?

Identify and briefly describe how a situation involving the delivery of a quantity of product exceeding the contracted amount would be resolved under the Sale of Goods Act.

Which of the following would establish a maximum level of liability for one of the parties if it commits a breach?

In what manner could you reasonably expect a court to apply the parol evidence rule when asked to interpret the meaning of a nebulous term in a written contract?

When the existence of the contract is not in doubt,the court will assign as reasonable a meaning as possible to vague or ambiguous terms.

Because numerous circumstances may arise that prevent a party from performing its contractual obligations,it is important (particularly in longer-term contracts)that negotiators evaluate risks,speculate on possible changes in the business environment,and be wary of making inflexible commitments or obligations that make performance much more expensive than anticipated.How might a business that is contracting to supply goods in the future protect itself from potential increases in costs?

Rumpel Lawn Care Inc.has had contractual relations with Rudy for many years.Rudy left a message asking Rumpel to include an organic weed inhibitor in the next lawn dressing mix applied to his lawn and to just add whatever charge there would be to his regular bill.What would you expect a risk manager is likely to advise Rumpel in this regard?

Which of the following is a distinguishing characteristic of a limited liability clause?

The court may decline to apply the parol evidence rule if the language in the written contract is ambiguous.