First Principles of Business Law

The contents of a contract
5. Proving the existence of agreed terms

5.2. Written contracts and the parol evidence rule

 

 

 

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

B wants her house painted. She negotates with A, a painter, discussing price, colours, type and quality of the paints A uses. A says he always used 'Dayglo' paint. The next day A sends a document to B, asking her to sign it to complete the contract. The document says: 'A agrees to paint the outside of B's house for $2,000 in any colour chosen by B from A's colour chart.' There is no mention of 'Dayglo' paint. B signs this document. Later, a dispute arises and B wants to lead evidence that, before she signed the contract, A promised orally to use a particular brand of paint called 'Dayglo' paint.

In these circumstances, is B entitled to lead evidence to establish this oral term?

(a) Yes. In these circumstances, B is entitled to lead evidence of both written and orally agreed terms.

(b) No. In these circumstances, B would probably not be allowed to lead evidence of any terms not contained in the written contract.

 

 

 

 

 

 

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