TERMS
- CONTRACT
The
terms of a contract are basic to and go to the heart of the
contract. For a written contract the terms are express provisions in
writing. However, many contracts are both in writing and oral. A term
of a contract is either a condition
or warranty.
A conflicting oral representation cannot upset an express written
term in the contract. However, the written term may be unclear or not
cover an oral representation. For example, oral representations made
by an agent about the property being purchased. A term or
representation is determined by the intention of the parties and this
is ascertained objectively with the
reasonable
person test.
The
court will not make or improve a contract for the parties. However,
if the terms are unclear and not necessary to the contract they can
be severed. The
reasonable
person test
is
used to determine the meaning of minor terms in the contract that are
not expressly stated, or the terms may be interpreted on the basis of
business efficacy.