First Principles of Business Law
The contents of a contract
5. Proving the existence of agreed terms

5.3. Partly written and partly oral agreements

 

 

 

Read the facts and the question and then choose the best answer.

A advertises her car for sale for $20,000. While inspecting the car, B asks if it is in sound mechanical condition. A says: "Yes, it is." B replies: "Good, then I'll pay your price." However the written contract of sale signed by A and B contains no mention of any promise that the car is in sound mechanical condition.

In the event of litigation, would B be permitted to lead evidence of an oral term in the contract that the car was in sound mechanical condition?

(a) Yes, because in these circumstances the written contract would not seem complete without some mention of the car's mechanical condition.

(b) No, because if there is a written contract, the parol evidence rule would prevent B from leading evidence of additional orally agreed terms.

 

 

 

 

 

 

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