Legal Environment of Business Exam 4

The term "consideration" in relation to contracts involves parties acting in an ethical manner. A) True B) False

B) False

Which of the following consists of an offer by one party and an acceptance of the terms by another party? A. Legal Object B. Agreement C. Coherence D. Alliance

B. Agreement

Which of the following is the term representing the $50 Rick paid for the book? A. Material B. Consideration C. Inducement D. Exchange

B. Consideration

What are the elements of an offer under common law?

1) Serious intent by the offeror to be bound to an agreement 2) Reasonably definite terms 3) Communication to the offeree

A liquidated debt may be the subject of an accord and satisfaction for less than the full amount if paid in cash. A) True B) False

B) False

A promise to do something that you are already obligated to do is generally a valid consideration. A) True B) False

B) False

As a general rule, past consideration qualifies as consideration. A) True B) False

B) False

Consideration is optional in every contract. A) True B) False

B) False

Any contract that is not a formal contract is an informal contract. A) True B) False

A) True

Courts interpret contracts using an objective standard. A) True B) False

A) True

If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant. A) True B) False

A) True

Once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance. A) True B) False

A) True

Only the offeree to whom an offer is directed can accept the offer. A) True B) False

A) True

Under the Mailbox Rule, a valid contract has been formed if a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. A) True B) False

A) True

Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree. A) True B) False

A) True

Which of the following is true regarding the effect of a debtor offering to pay a different type of payment, for example, goods instead of money, on a debt for which there is not a dispute over the amount or existence of the debt, and the creditor agrees? A. A liquidated debt is involved, and there is an accord and satisfaction. B. A liquidated debt is involved, and there is an accord but no satisfaction. C. An unliquidated debt is involved, and there is an accord but no satisfaction. D. An unliquidated debt is involved, and there is an accord and satisfaction.

A. A liquidated debt is involved, and there is an accord and satisfaction.

In a unilateral contract, the consideration for a promise is a[n] ____. A. Action B. Return promise C. Acknowledgement D. Agreement

A. Action

Richard offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to sell Denise a used business law book for $50. She asks if she can clean his apartment in return for the book instead of pay cash, and he agrees. Meanwhile, Sam comes to visit and offers Richard $45 for the business law book. Richard sells it to him because he decides his apartment is clean enough. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. The next day Denise shows up to clean Richard's apartment, but Richard had sold the book to Sam. Denise claims that Richard breached their contract. Richard says that any housekeeping done would have been wholly inadequate to support receipt of the book because his house was already clean. Two days after they first talked, Dawn tells Richard that she would like the computer. She tells him that her response bound him and that he should have awaited her action. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding whether Richard breached a contract with Dawn? A. Dawn's statement created an illusory promise which cannot be enforced. B. Richard breached the contract because he had an obligation to wait a reasonable length of time on Dawn's response, and waiting only two days was not reasonable. C. Richard did not breach the contract with Dawn because he waited a reasonable amount of time before disposing of the computer. D. Richard did not breach the contract, but Dawn can recover based on promissory estoppel.

A. Dawn's statement created an illusory promise which cannot be enforced.

If the subject matter of an offer is destroyed, the offer _________________. A. Immediately terminates B. Is extended for seven days C. Is extended for two weeks D. Is extended for thirty days

A. Immediately terminates

In which of the following does a contract arise not from words but from the conduct of the parties? A. Implied contracts B. Express contracts C. Executed contracts D. Bilateral contracts

A. Implied contracts

Connie asks Kelly if Kelly would consider selling her car for $2,000. What is the status of her negotiation? A. No offer has been made. B. An offer has been made, but it may be revoked prior to acceptance. C. A contract has been created. D. An offer has been made that may not be revoked prior to acceptance.

A. No offer has been made.

If an offeree makes a mistake and sends an acceptance to the wrong address, there is an acceptance upon dispatch. A) True B) False

B) False

In a bilateral contract, the consideration for a promise is a completed act. A) True B) False

B) False

Which of the following is true regarding the termination of an offer based on a rejection? A. Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated. B. Even on rejection, an offer is not terminated until the expiration of the time period for which it was originally to remain open. C. An offer must remain open for at least one day before it is terminated following a rejection by an offeree. D. An offer must remain open for at least two days before it is terminated following a rejection by an offeree.

A. Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.

Beverly offered to sell Rick a used business law book for $50, and Rick purchased the book. Beverly told him that he could use it in his upcoming business law class next semester. In fact, the book was several editions old, but neither Rick nor Beverly knew that. When Rick realized he could not use the book, he went back to Beverly requesting a refund. Beverly refused, saying that she thought the book was usable and they had a contract. Which of the following would describe Beverly's role in the transaction? A. She was the offeror. B. She was the offeree. C. She was the assentor. D. She was the assentee.

A. She was the offeror.

Sue is three months behind on her mortgage, and her lender filed negative information affecting her credit rating. Sue mailed one monthly payment to the lender along with a letter providing that she was making the payment on condition that the lender removes negative material sent to credit reporting agencies affecting her credit rating. The lender cashed the check but did not remove the negative information. Sue sues the bank for breach of contract. Which of the following is the most likely result? A. The bank will win because under the preexisting duty rule, Sue was already legally obligated to make the payment, and there was no consideration to support the contract. B. The bank will win because under federal law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful. C. Sue will win because the bank's cashing the check constituted acceptance of her offer, and a valid contract existed. D. Sue will win because the bank had an obligation to notify her that it was not accepting her offer before cashing the check.

A. The bank will win because under the preexisting duty rule, Sue was already legally obligated to make the payment, and there was no consideration to support the contract.

Inez calls Janice and tells her that unless she hears from Janice within twenty-four hours, she will assume that Janice will purchase her used textbook for $50. Is there a contract? A. There is no contract because in this situation silence cannot be used to indicate acceptance. B. There can be no contract because the offer was not made in person. C. There can be no contract because the offer was not made in writing. D. Janice can prove there was no contract only if she can show she did not hear about the offer before the expiration time.

A. There is no contract because in this situation silence cannot be used to indicate acceptance.

A contract is __________________ if one or both of the parties, without breaching the contract, have the ability to either withdraw from the contract or enforce it. A. Voidable B. Executory C. Implied D. Void

A. Voidable

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract? A. When Harry accepts Frank's offer. B. When the money is paid. C. When the car is delivered. D. Ten days after the car is delivered.

A. When Harry accepts Frank's offer.

Set forth the circumstances under which an offer can be terminated.

An offer can terminate by the following means: 1) Offeror's revocation 2) The reasonable passage of time 3) When the subject matter is destroyed or becomes illegal 4) Counteroffer or rejection by the offeree 5) Death or incapacity of the offeror 6) The failure of other conditions stated in the offer

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Helen returns the dog and requests the reward. Gretchen says there is no binding contract. Which of the following is true? A. Gretchen is incorrect because there is a binding contract. B. Gretchen is incorrect because there is a binding unilateral contract which Helen accepted by returning Sparky. C. Gretchen is correct because there is no binding unilateral contract. D. Gretchen is correct because Helen acted incorrectly by her manner of attempted acceptance.

B. Gretchen is incorrect because there is a binding unilateral contract which Helen accepted by returning Sparky.

Which of the following would describe Rick's role in the transaction? A. He was the offeror. B. He was the offeree. C. He was the assentor. D. He was the assentee.

B. He was the offeree.

The ____________________ theory of contract law states that the interpretation of the contract is based on how a reasonable person would interpret it. A. Subjective B. Objective C. Interpretive D. Unilateral

B. Objective

The person who makes an offer is called a(n) _________________. A. Offeree B. Offeror C. Agreeor D. Contractor

B. Offeror

Which of the following is an exception to the rule requiring consideration? A. Promissory agreement B. Promissory estoppel C. Quasi estoppel D. Quasi agreement

B. Promissory estoppel

Which of the following occurs when three conditions are met: one party makes a promise knowing the other party will rely on it; the other party does rely on it; the only way to avoid injustice is to enforce the promise? A. Promissory agreement B. Promissory estoppel C. Quasi estoppel D. Promissory performance

B. Promissory estoppel

Christen graduates from college, receives a job offer across the country, and moves there giving up her apartment and cancelling all the other job interviews. After she gets there, she is told that there is no job. What may she recover in most states? A. Nothing B. Reliance damages C. Liquidated damages D. Acknowledged damages

B. Reliance damages

Which of the following was the result on appeal in Thelma Agnes Smith v. David Phillip Riley, the case in the text in which the plaintiff who had lived with the defendant out of wedlock for several years sought, after they broke up, to enforce two agreements regarding the sale and assignment of property to her? A. The court ruled in favor of the defendant on the basis that a recitation of nominal consideration of $1 along with love and affection was insufficient consideration to support a conveyance. B. The court ruled in favor of the plaintiff on the basis that a recitation of nominal consideration of $1 along with love and affection was adequate consideration to support the agreements. C. The court ruled in favor of the defendant on the basis that the plaintiff's previous deposit of funds into a joint checking account was insufficient consideration for the later agreements. D. The court ruled in favor of the plaintiff on the basis that the plaintiff's previous deposit of funds into a joint checking account was sufficient consideration for the later agreements.

B. The court ruled in favor of the plaintiff on the basis that a recitation of nominal consideration of $1 along with love and affection was adequate consideration to support the agreements.

Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class? A. Rick is stuck with the book because he objectively agreed to purchase it. B. Rick is stuck with the book because Beverly subjectively thought it was the correct book and Rick did not object until after the contract was executed. C. As a result of the parties having a mutual misunderstanding about the book, the parties did not come to a meeting of the minds and there is no contract. D. As a result of the mutual mistake, at Rick's option he may return the book.

C. As a result of the parties having a mutual misunderstanding about the book, the parties did not come to a meeting of the minds and there is no contract.

Yolanda agrees to bathe and groom Wendy's dog, Fluffy Puff, for $30. Yolanda agreed to the price before seeing Fluffy Puff, who is a chubby dog with lots of hair. Yolanda tells Wendy that if she is going to groom Fluffy Puff, the price will be $40. Wendy reluctantly agrees but tells Yolanda that she should not have been surprised that a dog named Fluffy Puff would have lots of hair. Yolanda bathes and grooms Fluffy Puff, but Wendy will only pay $30. Which of the following is correct regarding Yolanda's entitlement to the extra $10? A. Yolanda is entitled to the extra $10 because a valid bilateral contract existed. B. Yolanda is entitled to the extra $10 because a valid unilateral contract existed. C. Assuming the unforeseen circumstances rule does not apply, Yolanda is not entitled to the extra $10 because she had a preexisting duty to bathe and groom Fluffy Puff for $30. D. Assuming the unforeseen circumstances rule does not apply, Yolanda is not entitled to the extra $10 because Wendy's promise to pay $30 was illusory.

C. Assuming the unforeseen circumstances rule does not apply, Yolanda is not entitled to the extra $10 because she had a preexisting duty to bathe and groom Fluffy Puff for $30.

Which of the following is an example of a formal contract? A. Contracts under seal, but not executed contracts. B. Letters of credit but not contracts under seal C. Contracts under seal and letters of credit. D. Contracts under seal, executed contracts and letters of credit

C. Contracts under seal and letters of credit.

Which of the following is true under the UCC regarding checks marked "paid-in-full"? A. If a business inadvertently cashes such a check, the business has 30 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. B. If a business inadvertently cashes such a check, the business has 60 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. C. If a business inadvertently cashes such a check, the business has 90 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction. D. The business has no recourse, and the debt is deemed discharged and satisfied.

C. If a business inadvertently cashes such a check, the business has 90 days from the date it cashed that check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction.

Which of the following references the requirement that a contract not be either illegal or against public policy? A. Consideration B. Capacity C. Legal object D. Ethical requirement

C. Legal object

Walter owns a used car lot. Zack and Matilda were looking at cars. Walter had one car, a clunker which he was going to junk. Matilda was looking at the car and Walter approached her. Matilda asked Walter "Would you consider taking $450 for the car?" Walter said "Yes, sold." When Matilda said she had to ask her parents, Walter said no, the car is sold. Walter told Zack he had great cars, but Zack took a look at an old Jalopy and sarcastically said "Suuuurrrre, I'll pay you $100,000 for it." Walter said 'Sold." What is the most likely result if Walter sues Matilda claiming she must pay $450 for the clunker? A. Walter will win because Matilda made an offer that he properly accepted. B. Walter will win because Matilda agreed to pay a reasonable price for the vehicle. C. Matilda will win because she merely expressed intent and did not make an offer. D. Matilda will win because she was not provided sufficient time in which to consider the offer.

C. Matilda will win because she merely expressed intent and did not make an offer.

Prudence, a teacher, offers $50 to any student who will mow her lawn. Sam goes to her house and begins mowing. Before Sam finishes, Prudence tells him she revokes the offer. Which of the following is true regarding Sam's entitlement to payment? A. Sam is not entitled to payment because a bilateral contract was involved that could only be accepted by full performance prior to revocation. B. Sam is not entitled to payment because a unilateral contract was involved that could only be accepted by full performance prior to revocation. C. Sam is entitled to recover because a unilateral contract was involved, and he was entitled to a reasonable amount of time to complete the job. D. Sam is entitled to recover because a bilateral contract was involved, and he was entitled to a reasonable amount of time to complete the job.

C. Sam is entitled to recover because a unilateral contract was involved, and he was entitled to a reasonable amount of time to complete the job.

Walter owns a used car lot. To increase sales, he advertised a $500 rebate on cars which are under two years old. He also has a contest-if anyone can hula hoop for ten hours straight, he will sell them a five year old car for $1,000. Walter sold out of two year old cars on the first day of the sale. Sam came in on the second day and asked for a two year old car and the $500 rebate. Walter told Sam he was sold out of two year old cars. A number of people tried to hula hoop, but only one, Shirley, hula hooped for ten straight hours. When she requested her five year old car for $1,000, Walter refused. Which of the following is the most likely result if a lawsuit is brought by Sam complaining that Walter ran out of cars available for rebate? A. Sam will win because Walter was required to have enough cars on hand for anyone who requested one. B. Sam will win because a rebate was involved. C. Sam will lose because a court will interpret the intent of Walter as being to invite readers to make an offer that Walter was free to reject. D. Sam will lose because he did not properly accept the offer.

C. Sam will lose because a court will interpret the intent of Walter as being to invite readers to make an offer that Walter was free to reject.

Which of the following is true regarding Beverly's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract existed? A. She is correct because contract law is based upon a subjective theory of contracts. B. She is correct because her genuinely held belief that the book was usable establishes that the contract was valid. C. She is incorrect because her subjective belief would not be the basis for a determination of whether a contract would be enforced in this case. D. She is correct because Rick subjectively believed the same.

C. She is incorrect because her subjective belief would not be the basis for a determination of whether a contract would be enforced in this case.

What is the most likely result in a lawsuit brought by Shirley against Walter? A. Walter will win because he was only engaged in preliminary negotiations. B. Walter will win because the advertisement was simply inviting customers to make an offer. C. Shirley will win because the ad would be treated as an offer that she properly accepted. D. Shirley will win because she properly made an offer that was accepted by Walter when she did the hula hooping.

C. Shirley will win because the ad would be treated as an offer that she properly accepted.

Which of the following terms would be considered material terms? A. Subject matter, but not price, quantity, quality or parties B. Price, subject matter, parties, but not quantity or quality C. Subject matter, price, parties, quality and quantity D. Parties and subject matter, but not price, quantity or quality

C. Subject matter, price, parties, quality and quantity

Which of the following was the result in the case in the text Hamer v. Sidway, in which, after performance by his nephew, an uncle reneged on a promise to the nephew to pay him $5,000 if the nephew refrained from drinking liquor, using tobacco, swearing, and playing cards or billiards for money until he was 21 years of age? A. That because refraining from the conduct at issue benefited his character and health, the nephew could not recover. B. That no consideration was involved, and the nephew could not recover because the consideration from him did not consist of money or goods. C. That the nephew could recover because he supplied consideration. D. That the nephew could recover, but only under promissory estoppel an amount compensating him for his reliance on the promise.

C. That the nephew could recover because he supplied consideration.

Which of the following sets forth the common law rule that the terms of an acceptance must exactly match the terms of the offer? A. The Plain Meaning Rule B. The Complete Rule C. The Mirror Image Rule D. The Exact Match Rule

C. The Mirror Image Rule

In an auction _________________, the seller is treated as making an offer to accept the highest bid. A. Without controls B. With qualifications C. Without reserve D. With reserve

C. Without reserve

_________________________ is what a person will receive in return for performing a contract obligation.

Consideration

In the case of Lucy v. Zehmer, involving whether or not there was assent to a contract or whether allegations of joking prevented the formation of the contract, what did the court determine? A) The court ruled that the contract would not be enforced because one of the parties was subjectively joking and that both the Zehmers testified they were joking. B) The court ruled that the contract would not be enforced because one of the parties was joking, and a reasonable person should have known that. C) The court ruled that the contract would be enforced because of what the parties verbally said regardless of whether an objective person would have thought joking was involved. D) The court ruled that the agreement would be enforced because under the applicable standard, the words and acts, judged by a reasonable standard, manifested an intention to be bound.

D) The court ruled that the agreement would be enforced because under the applicable standard, the words and acts, judged by a reasonable standard, manifested an intention to be bound.

Which of the following is not an example of consideration? A. A promise to stay in a job until a particular project is complete. B. A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it. C. A promise to cook dinner for your roommate for the next six months. D. A promise to buy skis for $300 if you like them.

D. A promise to buy skis for $300 if you like them.

Which of the following may represent a lack of genuine assent? A. Acceptance secured through fraud, duress, or misrepresentation, but not acceptance through undue influence. B. Acceptance secured through undue influence, misrepresentation, or duress, but not through fraud. C. Acceptance secured through fraud or duress, but not through misrepresentation or undue influence. D. Acceptance secured through fraud, duress, undue influence, or misrepresentation.

D. Acceptance secured through fraud, duress, undue influence, or misrepresentation.

Which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt when the debt itself, in its entirety, is in dispute, and the creditor agrees? A. A liquidated debt is involved, and there is an accord and satisfaction. B. A liquidated debt is involved, and there is an accord but no satisfaction. C. A liquidated debt is involved, and there is neither an accord nor a satisfaction. D. An unliquidated debt is involved, and there is an accord and satisfaction.

D. An unliquidated debt is involved, and there is an accord and satisfaction.

A[n] ______________ contract is commonly defined as a promise in exchange for a promise. A. Unilateral B. Trilateral C. Complete D. Bilateral

D. Bilateral

Which of the following represents the legal ability to enter into a binding agreement? A. Majority B. Emancipation C. Informed consent D. Contractual capacity

D. Contractual capacity

Which of the following is true regarding the adequacy of consideration? A. Courts generally consider the adequacy of consideration in determining whether to enforce a contract. B. Courts consider the adequacy of consideration only if something is sold for less than 90% of its market value. C. Courts consider the adequacy of consideration only if something is sold for less than 80% of its market value. D. Courts seldom consider the adequacy of consideration but will do so if fraud is involved.

D. Courts seldom consider the adequacy of consideration but will do so if fraud is involved.

Which of the following is true regarding allowable means of acceptance if no means of communicating acceptance is specified in an offer? A. If no means of communicating an acceptance is specified in an offer, the acceptance must be done through the U.S. mail system. B. If no means of communicating an acceptance is specified in an offer, the acceptance must be done either in person or through telephone communication. C. If no means of communicating an acceptance is specified in an offer, the acceptance must be done either in person or through the U.S. mail system. D. If no means of communicating an acceptance is specified in an offer, any reasonable means is generally allowable.

D. If no means of communicating an acceptance is specified in an offer, any reasonable means is generally allowable.

In a[n] ______ debt, there is no dispute about the fact that money is owed and the amount of money owed. A. Actual B. Acknowledged C. Unliquidated D. Liquidated

D. Liquidated

If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into a[n] ______________ contract with the offeror. A. Clear B. Explicit C. Irrevocable D. Option

D. Option

Which of the following is true regarding Richard's claim about the inadequacy of house cleaning as consideration? A. Richard is correct because cleaning house would not constitute a benefit to the promisor. B. Richard is correct because cleaning house would not constitute a detriment to the promisee. C. Richard is correct because Denise had only promised - she had not actually performed. D. Richard is incorrect because house cleaning would constitute consideration that would support a contract, and the court would not likely be concerned with the fact that the cleaning duties would be light.

D. Richard is incorrect because house cleaning would constitute consideration that would support a contract, and the court would not likely be concerned with the fact that the cleaning duties would be light.

Which of the following is true regarding the dispute between Richard and Sam about whether Sam must return anything? A. Sam must return the computer only. B. Sam must return the business law book only. C. Sam must return the computer and the business law book. D. Sam does not legally have to return anything.

D. Sam does not legally have to return anything.

Which of the following is true when an offer authorizes a certain mode of acceptance but does not require it, and an offeree attempts to accept the offer through a method other than the authorized means? A. The acceptance becomes a counteroffer that the original offeror may or may not accept. B. There is no contract, and the attempted acceptance is of no effect. C. There is a contract only if the acceptance is received by the time that acceptance through the authorized means would have been received. D. The contract is not formed until the acceptance is received by the offeror.

D. The contract is not formed until the acceptance is received by the offeror.

Which of the following is true regarding the preexisting duty rule? A. Unforeseen circumstances is an exception, but additional work and past consideration are not exceptions. B. Additional work is an exception, but unforeseen circumstances and past consideration are not exceptions. C. Past consideration is an exception, but unforeseen circumstances and additional work are not exceptions. D. Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception.

D. Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception.

All contracts can be categorized as either _____________ or ______________. A. Unilateral; complete B. Unilateral; executory C. Bilateral; complete D. Unilateral; bilateral

D. Unilateral; bilateral

What is the most likely result if Walter sues Zack to force him to buy the car for $100,000? A. Walter will win because Zack properly made an offer which Walter accepted. B. Zack will win because he was merely expressing interest. C. Zack will win because under a subjective standard he was joking. D. Zack will win because under an objective standard, it appears he was joking.

D. Zack will win because under an objective standard, it appears he was joking.

Frank is building a home for Debby that is to be completed by December 31st. Frank tells Debby that he needs to hire additional workers in order to have the home done by that time and that she needs to pay him an extra $10,000. Debby says that she will pay. Frank finishes the home and asks for his $10,000. Debby refuses to pay. What is the likely result if Frank sues?

Debby will likely win. Assuming the unforeseen circumstances rule does not apply, Frank had a preexisting contractual duty to complete the pool by December 31st.

Once all the terms of a contract have been fully performed, the contract is said to be ___________________.

Executed

The _____________________ provides that an acceptance is valid when placed in a mailbox.

Mailbox Rule

Define and discuss promissory estoppel, and give an example of when it would be applied.

Promissory estoppel occurs when one party 1) Makes a promise knowing the other party will rely on it 2) The other party does rely on it 3) The only way to avoid injustice is to enforce the promise One example is the job applicant who accepts a job offer and moves to a new city relying on the job offer, and then is told there is no job.

The ________________________________ states that if a writing or term appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to outside evidence and with the words given their ordinary meaning.

The plain meaning rule