Which Description Best Describes the Factual Matrix Examined by the Courts

question 70

Multiple Choice

Which description best describes the factual matrix examined by the courts when interpreting contractual terms?

• A) the evidence of the party's subjective intention or negotiations leading up to the contract
• B) the background facts known to the parties when the contract was concluded
• C) the plain meaning of the words used in the contract document itself
• D) the impression of a 'reasonable bystander' of the parties' intentions

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Definitions:

Specially Manufactured Goods

Items that are produced to a buyer's personal specifications, which are not suitable for sale to others in the ordinary course of the seller's business.

Promissory Estoppel

A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.

Oral Contracts

Agreements between parties that are spoken rather than written but are still legally binding.

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan.