Crucial Exams

Multistate Bar Examination Practice Question

A manufacturer and a retailer negotiated the sale of 1,000 widgets. During these negotiations, the manufacturer orally agreed to provide free shipping. Subsequently, they both signed a detailed written contract for the sale of the widgets which specified the price, quantity, and delivery date, but was silent on the issue of shipping costs. The contract included a merger clause stating, 'This writing constitutes the complete and final agreement between the parties.' When the manufacturer later billed the retailer for shipping, the retailer sought to introduce evidence of the manufacturer's prior oral promise of free shipping.

Under the parol evidence rule, is this evidence admissible?

  • Yes, because the oral agreement is a consistent additional term.

  • No, because the written contract contains a merger clause, indicating it is a fully integrated agreement.

  • Yes, because the evidence is being used to interpret an ambiguous term in the contract.

  • No, because oral agreements concerning the sale of goods are never enforceable.

Multistate Bar Examination
Contracts
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