Leo enters into a contract with Metro Taxi Company to work as a cabdriver.Under the plain meaning rule,if the contract's writing is clear and unequivocal,the meaning of the terms must be determined from
A)anyextrinsic evidence.
B)only relevant extrinsic evidence.
C)the face of the instrument.
D)the later testimony of the parties.

Question

Quizplus · Accepted Answer

The plain meaning rule states that if the terms of a contract are clear and unambiguous, then the meaning of the terms must be determined by the language used in the contract itself. This means that extrinsic evidence such as testimony of the parties or other outside information cannot be used to interpret the contract. Therefore, the meaning of the terms in Leo's contract with Metro Taxi Company must be determined from the face of the instrument or the language used in the contract itself.

Leo Enters into a Contract with Metro Taxi Company to Work