TERMS OF THE CONTRACT Flashcards
Parol Evidence Rule
like an evidence rule in the sense that
(1) the issue is whether evidence is admissible
and
(2) admissibility often depends on the purpose for which the evidence is to be introduced
Integration (parol evidence)
written agreement that court finds is the final agreement triggers parol evidence rule
Partial Integration (parol evidence)
written and final but not complete
Complete Integration (parol evidence)
written and final and complete
Merger Clause (parol evidence)
K clause such as, “this is the complete and final agreement)
*persuasive but not conclusive
Parol Evidence (definition) (3)
- words of the parties
- before integration (before K in written form)
- oral or written
Parol Evidence fact patterns (5)
- CHANGING/CONTRADICTING terms in written deal- NOT ADMISSIBLE
- MISTAKE in integration (clerical mistake)- may consider such terms for limited purpose of deterring whether there was a mistake in integration
- DEFENSES (getting out of a written deal)
- does not prevent a court from considering evidence of earlier words for limited purpose of determining whether there is a defense to the enforcement such as misrep, fraud or duress - AMBIGUITY- does not prevent from considering to resolve ambiguities in written contract
- ADDING to the written deal - consider if partial integration or adel terms would ordinarily be in separate agreement
Course of Performance
same people same contract
Course of Dealing
same people, different but similar contract
Custom and Usage
different but similar people, different but similar contract
Forms of Conduct (3)
- course of performance THEN
- course of dealing THEN
- custom and usage
Shipment Contracts (UCC) (3)
seller completes delivery obligation when it:
1. gets the goods to a common carrier
AND
2. makes reasonable arrangements for delivery
AND
3. notifies the buyer
*seller completes delivery obligation BEFORE delivery is completed
Destination Contracts
seller does not complete its delivery obligation until the goods arrive at the destination
FOB (UCC delivery obligations)(2 options)
FOB followed by city where SELLER or GOODS are means SHIPMENT F
FOB followed by any other city means DESTINATION F
Risk of Loss Rules (4)
DO in ORDER
- Agreement- the agreement controls
- Breach- BP liable for any uninsured loss even though breach is unrelated to problem
- Common Carrier delivery- from seller to buy upon completion of delivery obligation
- “Catch all”- IS SELLER A MERCHANT?
- shifts from merch-seller to buy upon receipt
- shifts from nonmerch-seller when he or she “tenders” the goods