Key Topics: Offer and Acceptance | Essential Terms | Oral Versus Written Agreements
Terms of the Agreement
If the terms are in writing, it can be easier to identify the terms, but often key terms are omitted because one or both parties thought it should be obvious that the agreement contained those terms. The court will imply terms reasonable to carry out the agreement, but the court will not create entirely new terms, assuming there is enough evidence of a meeting of the minds for an underlying agreement.
If, for example, the contract calls for one party to send payment via USPS, then it is reasonably implied that the mailing party will place appropriate postage on the envelope for no extra cost to the other party.
How do outside documents become part of the agreement?
ANSWER: If the contract has a merger or zipper clause (“This is the entire agreement between the parties”) then the court will not look to extrinsic evidence to glean the parties’ intent from the four corners of the document.
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