Exercise 11
Diana and Jim enter into a written contract under which Diana will sell Jim some of her rare comic books for $300. The contract contains a list of each comic book that is supposed to be part of the sale. The contract states that it contains the complete and final agreement reached by Diana and Jim. When Jim receives the comics, he is upset to find out that Diana did not include a particular Superman comic. He sues Diana, stating that even though the written contract does not mention that particular Superman issue, he and Diana had orally agreed, just after the contract was written, that she would include the Superman in the deal. Jim wants to submit evidence of their oral agreement. Diana argues that such evidence would violate the parol evidence rule.
How should the judge rule?
- A. For Diana, because the contract states that it is the complete and final agreement.
- Sorry, but that's not the correct answer. Please select another.
- B. For Jim, because he is presenting evidence that is an exception to the parol evidence rule.
- Yes, the correct answer is B. Jim wants to present evidence that shows a subsequent modification of the written contract. Evidence of a subsequent modification of a contract is an exception to the parol evidence rule and should therefore be admitted.