A Written, Integrated Contract Contains a Provision That States It

question 50

Multiple Choice

A written, integrated contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months.The defendant claims that the contract meant a 10-month school year.In this case:

• A) parol evidence cannot be used to explain the term, because it is in an integrated document.
• B) parol evidence cannot be used to explain the term, because the plain meaning of a "year" is 12 months.
• C) the term "year" is ambiguous, and the parties can bring in parol evidence to clarify their intent.
• D) parol evidence cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered by any future action.

Eliminated

Removed or taken away, often used in the context of erasing a component or aspect in various fields such as finance, science, or competition.

Book Value

The net value of a company's assets as recorded on the balance sheet, minus its liabilities and the par value of any outstanding shares.

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as the result of making a decision.