#1
Which of the following is a fundamental principle of contract interpretation?
The plain meaning rule
ExplanationInterpreting contractual terms according to their ordinary meaning.
#2
What is the role of the 'plain meaning rule' in contract interpretation?
To interpret contractual terms according to their ordinary meaning
ExplanationAssigning ordinary meanings to terms unless a different intent is evident.
#3
What does the 'contra proferentem' rule mean in contract interpretation?
Interpreting against the drafter
ExplanationInterpreting ambiguous terms against the party who drafted the contract.
#4
Which of the following is NOT a tool used in contract interpretation?
The doctrine of frustration
ExplanationA legal doctrine unrelated to contract interpretation.
#5
What is the 'Four Corners Rule' in contract interpretation?
The contract is interpreted solely based on its written terms
ExplanationInterpreting the contract strictly based on its written content.
#6
What is the role of the 'contra proferentem' rule in contract interpretation?
To prevent fraudulent misinterpretation
ExplanationPreventing the party drafting the contract from benefiting from unclear language.
#7
What is the 'surrounding circumstances' approach in contract interpretation?
Considering the context in which the contract was formed
ExplanationTaking into account the external factors surrounding the formation of the contract.
#8
What is the role of the 'hierarchy of terms' in contract interpretation?
Determining the order of importance of contract terms
ExplanationEstablishing the priority or significance of different contract provisions.
#9
Which of the following doctrines allows a court to imply terms into a contract to make it workable?
The doctrine of implied terms
ExplanationIncorporating additional terms to ensure the contract functions as intended.
#10
What principle states that ambiguous terms in a contract should be interpreted against the party who drafted the contract?
The doctrine of contra proferentem
ExplanationInterpreting unclear terms to the disadvantage of the drafter.
#11
Which doctrine in contract interpretation implies terms to reflect the parties' reasonable expectations?
The doctrine of implied terms
ExplanationIncluding terms in the contract to fulfill the parties' presumed intentions.
#12
What principle requires courts to give effect to all terms of a contract rather than rendering them meaningless?
The 'noscitur a sociis' principle
ExplanationInterpreting terms in a manner consistent with the overall contract.