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:
“Again we have here two distinctions that are no distinctions, but made to seem so by terms invented by I know not whom to cover ignorance, and blind the understanding of the reader: for it cannot be conceived that there is any liberty greater, than for a man to do what he will.”
—Thomas Hobbes (1579–1688)