Exam 7: The Terms of a Contract

Why should one NOT rely on the common law doctrine of frustration in contractual negotiations?

Through the doctrine of business efficacy,a judge is entitled to imply terms necessary to make a contract workable.

Identify and briefly describe the circumstances that are of particular importance to negotiators with respect to evaluating risks associated with increases in the cost of materials used to produce a product.Identify and briefly describe contractual terms that may be applied to reduce the risk of market price fluctuations.

The parol evidence rule prohibits the introduction of a specific type of evidence relating to the terms of a contract when the language used in that document is clear.What is the second condition required to invoke the parol evidence rule?

When resolving a dispute regarding the interpretation of a contract,the court always bases its interpretation on how a reasonable person would regard a term in a contract.

The court in Tilden Rent-A-Car v.Clendenning refused to uphold an exemption clause because the business knew that the customer had not read the contract.

What legislation would you need to rely on if you want to ensure that terms are implied in a contractual business arrangement?

Which of the following would provide that a supplier will NOT be liable to a retailer if it is fails to deliver products to it on time?

What is the term for the guiding principles that are used for interpreting terms of a contract?

Identify four grounds used by the courts for introducing implied terms into contracts.Give an example of each.

What principle could you reasonably expect Canadian common law courts to apply when faced by cases dealing with standard form contracts?

Contracting parties can agree to limit the liability for a breach to less than what is recoverable under the principles of contract law.

ABC Electrical Inc.has a contract with a building contractor that provides that in the event of breach,ABC will be entitled to damages of $10 000.Which of the following best describes this type of contract term?

A supplier and a retailer have a long,established relationship.Earlier contracts between them have always provided the standard "within 30 days of delivery" payment provision.A new contract between them makes no reference to payment terms.What would a court most likely rely on to arrive at a decision that payment is due within 30 days of delivery?

An entire contract clause could be used to prevent a court from using outside evidence to interpret a contract.