When Two Parties Are Involved in a Misunderstanding as to the Meaning

question 40

Multiple Choice

When two parties are involved in a misunderstanding as to the meaning of a term of the contract,which of the following is usually applied by the court to settle the matter?

• A)The court will find that there is no contract because there is no meeting of the minds.
• B)non est factum
• C)the most reasonable interpretation of the terms
• D)the equitable remedy of rectification
• E)caveat emptor

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Definitions:

Management Rights

The rights retained by employers, allowing them to operate and manage their business without interference from the workforce.

Co-ownership

The state or condition where two or more parties hold property jointly, sharing rights and responsibilities.

Instrumentality

A term referring to a means or agency through which a function of another entity is accomplished.

Business Transaction

An interaction between two or more parties that involves the exchange of goods, services, or information for the purpose of conducting business.