Paralegal 041 - Contract Law
Chapter 12 – Contract Interpretation
Rules of Construction
- Rules that are applied to resolve contract disputes and to determine parties’ intentions.
Components of a Written Contract
- Identification
- Recitals
- Consideration
- Definitions
- Body
- Signatures and Acknowledgements
Parol Evidence Rule
- A writing, intended by the parties to be a final embodiment of their agreement, cannot be modified by evidence that adds to, varies, or contradicts the writing
System
- A paralegal working in contract compliance or implementation, or even contract litigation, should have a system for dealing with the contract at issue.
Review Materials for Chapter 12
- Subsequent agreement – A separate, later agreement that changes or modifies the original agreement
- ADR – To settle a dispute other than by litigation, including arbitration and mediation
- Notary Public – Person authorized by state to administer oaths, certify documents, attest to the authenticity of signatures, and perform other official acts
- Self-Proving Document – Complies with formalities and can serve as testimony in court
- Defined Term – Short-hand way of referring to a person, place, thing, or event that might otherwise require a lengthy description
- Recitals – Short statements that provide background or explain the reasons for the contract; not technically part of a contract
- Incorporation by reference – A reference to an outside document, making that document part of a contract
- Boilerplate – Standard terms included in most contracts
- Construction Rules of – Rules that are applied to resolve contract disputes and to determine parties’ intentions
- Merger Clause – contract provision stating that the document is the complete and final statement of agreement
- Record – To record a document is to file it with the official charged with keeping documents such as deeds and judgments
- Parol Evidence rule – A writing, intended by the parties to be a final embodiment of their agreement, cannot be modified by evidence that adds to, varies, or contradicts the writing
