Question

Which of the following statements is true in cases where only one party drafts a contract that contains terms that appear vague and ambiguous to the other party? A. The court will give the terms the meaning as per trade usage. B. The court will reject the non-drafting party’s attempt to reinterpret the terms after the contract has been signed. C. The court will declare the drafting party’s behavior as a tort due to intentional ambiguity of terms. D. The court will interpret the terms as they mean in the common language. E. The court will interpret the ambiguous and vague terms against the party that drafts them.

10__C__Which of the following states that parties to a complete and final written contract cannot introduce oral proof in court that changes the intended meaning of the written terms?

A. the statute of frauds

B. the exclusionary rule

C. the parol evidence rule

D. the statute of limitations

E. the assignor rule

11--Which of the following statements is true of publicly held business organizations?

A. Publicly held organizations are owned only by a few persons.

B. Publicly held organizations are only owned by the government.

C. Shareholders of publicly held organizations can transfer their ownership without interfering with the organization’s management.

D. A family-operated business is an example of a publicly held business organization.

E. Publicly held organizations are free from all legal liabilities to its shareholders, which is the primary reason for this corporate form being used.

Answer 1

9 Ans:-

D. The court will interpret the terms as they mean in the common language

Reason:- At the time of drafting a contract when there is only one party with ambiguous terms, the only way for interpretation with the other party is the common language. This process will rely on the legal conversation with the judge or the jury. This is mostly referred as "filling the gaps" , which is the main responsibility that often relies on the court in a situation where there is only one party who drafts a contract that contains the terms which appear vague and ambiguous to the other party in charge in the contract.

10 Ans:-

C. The parol evidence rule

Reason:- This rule influences forms of contracts. This rule states that parties who are involved in a complete and final written contract cannot introduce oral evidence in court that changes the intended meaning of the written terms. This rules however applies to evidence of oral agreements made at the time of agreement or prior to the written contract.

One of the exception of this rule is that it allows evidence or oral agreement which actually explains the meaning of written terms without changing the terms. Oral evidences changes the meaning of written terms can be given if necessary to prevent fraud. It will not hear as to what was said rather it is more concerned on what is included in the contract when it was signed.

11 Ans:-

C. Shareholders of publicly held organisation can transfer their ownership without interfering with the organisations management

Reason:- Publicly held business organisationare owned by hundreds if not thousands of people, whose stocks are freely traded on a public exchange market at large. The shareholders of publicly held business organisations can transfer their ownership without interfering with the organisations management. It is a form of an organisation which has a several legal business entity from its owners.

Publicly held organisations are owned byou many investors and not by the government. These organisations offers its securities for sale to general public and trades it's stock in a stock exchange market.

Shares of a publicly held business organisations are brought and Sold in a stock exchange market.