A Court That Is Hearing a Contractual Dispute Has Determined

question 6

Multiple Choice

A court that is hearing a contractual dispute has determined that an ambiguous term must be construed against the party drafting the agreement.What is name for the doctrine the court is applying?

• A) parol evidence rule
• B) quantum meruit
• C) implied contract rule
• D) contra proferentum rule

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Definitions:

Total Cost

The sum of all costs required to produce a certain amount of a good or service, including fixed and variable costs.

Duopoly

A two-firm oligopoly.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers, typically sloping downwards from left to right.

Competing Firm

A company that produces goods or services that are similar to those of another company, thereby participating in the same market.