Interpretation of Contracts
The TTToC considers a contract to be a transfer of property titles between parties to the contract. Title transfers can be conditional, implying a title transfer is to take effect only if a specified condition is met, as well as future oriented implying a title transfer is to take effect at a specified future point in time. For example, in a loan contract the lender transfers title to the principle to the borrower, and the borrower transfers to the lender a future title to the amount of the principal plus the interest. When the loan matures the transfer of title from borrower to lender takes effect, and the lender is entitled to obtain the money, which now belongs to him. Another example is a service provision contract in which the service consumer transfers a future title of money to a service provider on the condition that a certain act of service is performed. If the service is not provided the condition of the transfer is not met and the conditional title transfer of money does not take effect. Contracts can be agreed upon either by explicit verbal agreement (as is the case with formal written contracts) or by implicit representation of agreement (as is the case when a restaurant order is placed by a passerby).
Read more about this topic: Title-transfer Theory Of Contract
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