SU 2 Chapter 8 - Certainty/Ascertainability

Question 1

What does certainty mean?

Answer 1

Terms of contract must be certain, concluded in a way that certain ascertainable obligations can be discerned.

Question 2

What will courts do on basis of uncertainty?

Answer 2

They will attempt to give meaning to contract, by trying to interpret it and looking at the surrounding circumstances rather than making it void.

Question 3

What does determination by third party mean?

Answer 3

Obligation will come into being if content is capable of determination by a third party or ascertainable through another objective method.

Question 4

What does discretion of one of the parties refer to?

Answer 4

Discretion watered down in cases where discretion to decide content of obligation given to one of the parties.

Question 5

Can an essential term be determined by means of discretion?

Answer 5

No, only non-essential terms if there is an objective element to the discretion.

Question 6

What is effect of uncertainty?

Answer 6

Void, Counter performance also void.