Question

In contract law:

a) Define "parol evidence."
b) Explain what a "merger clause" means in the context of the parol evidence rule and discuss its impact on a contract.
c) Provide three examples of contracts where the parol evidence rule may be relevant.

Answer 1

In contract law, parol evidence refers to extrinsic evidence outside of the written contract. A merger clause is a provision confirming that the written agreement is final. The parol evidence rule may be relevant in real estate, employment, and construction contracts.

Step-by-step explanation:

In contract law, 'parol evidence' refers to any oral or written evidence that is extrinsic to or outside of the written contract. It includes statements, negotiations, or understandings made before or at the time the contract was made.

A 'merger clause' or 'integration clause' is a provision in a contract that states that the written agreement is the complete and final expression of the parties' intentions. It is used to confirm that any prior oral or written agreements or understandings are merged into the written contract and are no longer enforceable.

Three examples of contracts where the parol evidence rule may be relevant are:

1. A real estate contract where the buyer claims that the seller promised to make certain repairs to the property, but this promise is not included in the written contract.
2. An employment contract where the employee alleges that the employer made verbal promises about certain benefits or conditions of employment that are not mentioned in the written agreement.
3. A construction contract where one party claims that there were additional oral agreements about changes or modifications to the scope of work that are not reflected in the written contract.