Implied-in-fact Terms
Judges will often infer terms into the contract that the parties did not explicitly cite. For instance, in the "satisfaction clause" case, judges might infer that the parties intended a "reasonableness test" - that the clause could be satisfied if a reasonable person would be satisfied by the promisee's performance, regardless of whether the promisor himself asserts he is satisfied. (This interpretation is often used in cases in which a performance can be objectively evaluated, such as with the construction of a warehouse; the implied-in-law interpretation above is preferred where satisfaction is more subjective, as with the painting of a portrait.)
Read more about this topic: Illusory Promise
Famous quotes containing the word terms:
“I had a long day’s work, starting at eight in the morning and ending after nine at night, but in those days [we] ... did not think of our day in terms of hours. We liked our work, we were proud to do it well, and I am afraid that we were very, very happy.”
—Louie Mayer (b. c. 1914)