Introductory Business Law CLEP Prep Practice Exam

What must a court consider when adjudicating a dispute over a contract?

1. Intentions of all parties

2. Facts of the case

3. Potential precedents

4. Previous regulations

The correct answer is: Intentions of all parties

Courts must consider the intentions of all parties when adjudicating a dispute over a contract because it is important to understand the original agreement between the parties and what each party intended to gain from the contract. The facts of the case are also relevant as they can provide evidence of each party's actions and how they may have violated the contract. However, simply relying on the facts alone may not fully capture the intentions of the parties. Similarly, potential precedents and previous regulations may be informative, but they do not directly address the specific intentions of the parties in the contract. Therefore, the most important factor for a court to consider in a dispute over a contract is the intentions of all parties involved.