1 Contract practice and its expectations in terms of governing law

Question 1

The purpose of an entire agreement clause

Answer 1

To attempt to isolate the contract from any source or element that may be external to the document

Question 2

Parol evidence rule

Answer 2

the interpreter would not be allowed to take into consideration external circumstances when constructing the contract, such as the parties conduct during negotiations or after the signature of the contract

Question 3

The purpose of the parol evidence rule

Answer 3

to enhance predictability in the course of commerce; in balancing the interests of establishing the real intention o the parties and preserving predictability within commercial transactions, the parol evidence rule favours the latter.

Question 4

No waiver clause - the purpose

Answer 4

The purpose of a no waiver clause is to ensure that the remedies described in the contract may be exercised in accordance with their wording at any time and irrespective of the parties´conduct.

Question 5

No oral amendments clause - the purpose

Answer 5

The purpose of this clause is to ensure that the contract is implemented at any time according to its wording and irrespective of what the parties may have agreed later, unless recorded in writing.