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First Principles of Business Law |
| The contents of a contract |
| 5. Proving the existence of agreed terms |
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5.6. The parol evidence rule and 'collateral warranties' |
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Read what the parties say and then choose the best answer. A says to B: "I am interested in buying your car for the price you are asking, but only if the car has a low mileage and has had all its scheduled services." B replies: "It has only done the mileage shown and has had all its services." A and B then sign a written contract of sale which identifies the car and states the price but says nothing about any other terms or conditions. Even if the parol evidence rule prevents A from proving additional terms as part of the written contract, could he claim that a separate contract exists in which B promised orally that the car he sold has done the mileage shown and always been fully serviced? |
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