Contract content and meaning Bar Exam Flashcards - Medical Study Cards
Master Contract content and meaning with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.
Contract content and meaning Flashcard Deck - 10 Cards
Flashcard 1: What is course of dealing, and how can it affect interpretation?
Answer: Course of dealing is a sequence of conduct concerning prior transactions between the same parties that establishes a common basis for interpreting their expressions and conduct. It may supplement or qualify terms unless inconsistent with express language or otherwise unreasonable.
Flashcard 2: How is an unresolved ambiguity in a contract ordinarily construed?
Answer: After considering the language and relevant circumstances, an ambiguity is generally construed against the drafter under the rule of contra proferentem, especially when other interpretive tools do not resolve it. The rule is usually a last resort and may not apply when the parties are sophisticated and negotiated the term equally.
Flashcard 3: How does the UCC determine the meaning of an ambiguous or open contract term?
Answer: The UCC gives effect to the parties’ agreement and commercial context, including course of performance, course of dealing, and usage of trade, and supplies reasonable gap-fillers when needed. The parties’ obligation of good faith limits interpretation and performance.
Flashcard 4: What UCC rules govern the hierarchy of contract terms, course of performance, course of dealing, and usage of trade?
Answer: Express terms control inconsistent course of performance, course of dealing, and usage of trade; course of performance controls inconsistent course of dealing and usage of trade; and course of dealing generally controls inconsistent usage of trade. Consistent additional terms may supplement the express contract.
Flashcard 5: When is a contract or writing considered integrated for purposes of the parol evidence rule?
Answer: A writing is integrated if the parties intended it as a final expression of at least some contract terms. It may be partially integrated or completely integrated, depending on whether the parties intended it as the complete and exclusive statement of their agreement.
Flashcard 6: What happens when a contract omits a term that is necessary to determine the parties’ rights and duties?
Answer: A court may supply a reasonable term consistent with the parties’ agreement and the circumstances. Under the UCC, gap fillers commonly address price, time, place of delivery, and payment, while the parties must still act in good faith.
Flashcard 7: What is the effect of course of performance, course of dealing, and usage of trade on contract meaning?
Answer: They may explain or supplement contractual language and can establish the parties’ practical meaning, subject to the express terms and applicable law. Under the UCC, express terms prevail over course of performance, course of dealing, and usage of trade, and course of performance generally prevails over the other two.
Flashcard 8: What does the parol evidence rule prohibit, and what evidence does it permit?
Answer: It bars evidence of prior or contemporaneous agreements that would vary or contradict the terms of an integrated writing; with a completely integrated writing, it also bars consistent additional terms. It permits subsequent agreements and evidence offered to interpret, explain, or establish defenses such as fraud, mistake, or duress.
Flashcard 9: Under the majority rule, may a court consider extrinsic evidence to determine whether a contract term is ambiguous?
Answer: Yes. The majority and Restatement approach allows the court to consider relevant extrinsic evidence when deciding whether language is ambiguous, while some jurisdictions follow a stricter plain-meaning approach that first examines the text alone.
Flashcard 10: What is the primary rule for interpreting contractual language under the objective theory of contracts?
Answer: Interpretation generally follows the meaning a reasonable person in the parties’ position would give the language, considering the circumstances known to the parties. A party’s undisclosed subjective intent ordinarily does not control.
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