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When a written contract is not clear as to its terms, and a court has to provide its interpretation, what
are some factors considered in its decision to rule for or against a party?
Most contracts are easy and simple, which means interpretation shouldn’t be needed. To form a
contract, you must first have the agreement which is completed by the process called offer an
acceptance. An agreement consists of four components that help classify it as a contract. Those four
components are: agreement, consideration, competent parties, and legal purpose. Consideration comes
after the agreement this is something such as property or money that is exchanged by each party.
Competent parties also known as capacity is having the legal and mental ability to even be a part of a
contract. Lastly, the contract must not be illegal therefore it must have a legal purpose the court will not
enforce contracts that are not legal. All these things factor in to whether a court will even acknowledge
the case. The court also cannot enforce a contract if it is indefinite or unclear therefore they couldn’t
determine a winning party.
You go to your favorite restaurant and select a complete dinner from the menu presented to you.
Prices are not stated on the menu. The waiter does not discuss price and you do not ask. Has a
contract been formed?
An implied contract has been formed. When you order food, it is implied that you also must pay for it.
An implied contract is formed by the actions of the parties which in the case is placing an order for the
food.
