Special Rules and Formalities Section 10.2. Understanding Business and Personal Law Special Rules...

transcript

Special Rules and FormalitiesSpecial Rules and FormalitiesSection 10.2Section 10.2

Understanding Business and Personal Law

Special Rules and Formalities Special Rules and Formalities Section 10.2Section 10.2

Form of a Contract

What You’ll Learn

How to explain the parol evidence rule How to explain the parol evidence rule (p. 215)(p. 215)

How to identify the exceptions to the How to identify the exceptions to the parol evidence rule (p. 215)parol evidence rule (p. 215)

Form of a Contract

What You’ll Learn

How to explain the best evidence rule How to explain the best evidence rule (p. 216)(p. 216)

How to change a contractual writing How to change a contractual writing (p. 217)(p. 217)

Form of a Contract

Why It’s Important

By understanding the parol evidence and By understanding the parol evidence and best evidence rules, you will know what best evidence rules, you will know what business records to keep when you enter a business records to keep when you enter a contractual relationship that requires a contractual relationship that requires a writing.writing.

Form of a Contract

Legal Terms

parol evidence rule (p. 215)parol evidence rule (p. 215)best evidence rule (p. 216)best evidence rule (p. 216)duplicate originals (p. 216)duplicate originals (p. 216)

Form of a Contract

Special Rules for Written Contracts Parol Evidence RuleThe Best Evidence Rule

Section OutlineSection Outline

Changing the Writing

Form of a Contract

Pre-Learning Question Pre-Learning Question

What do you think parol evidence is?

Form of a Contract

Special Rules Special Rules for Written Contracts for Written Contracts

There are special rules that apply to There are special rules that apply to written contracts.written contracts.

These are the parol evidence rule and These are the parol evidence rule and the best evidence rule.the best evidence rule.

Form of a Contract

Parol Evidence Rule Parol Evidence Rule

When a written contract contains When a written contract contains everything that was agreed upon, you everything that was agreed upon, you ensure that neither party can go to ensure that neither party can go to court and claim a contract is incorrect court and claim a contract is incorrect or that it fails to show the parties’ real or that it fails to show the parties’ real intentions.intentions.

Form of a Contract

This long-established rule is called the This long-established rule is called the parol evidence ruleparol evidence rule. .

Parol means “word of mouth.”Parol means “word of mouth.”Evidence is anything presented as Evidence is anything presented as proof at a court trial.proof at a court trial.

Form of a Contract

This rule says that evidence of oral This rule says that evidence of oral statements made before signing a statements made before signing a written agreement cannot be written agreement cannot be presented in court to change or add to presented in court to change or add to the terms of that written agreement.the terms of that written agreement.

Form of a Contract

The court presumes that a written The court presumes that a written contract contains all of the terms and contract contains all of the terms and provisions intended by the parties.provisions intended by the parties.

Form of a Contract

What does parol mean?

Form of a Contract

ANSWERANSWER

Word of mouth

Form of a Contract

Exceptions to the Exceptions to the Parol Evidence Rule Parol Evidence Rule

Parol evidence may be introduced to:Parol evidence may be introduced to:

Explain some point that is not clear Explain some point that is not clear in a written agreement.in a written agreement.

Form of a Contract

Exceptions to the Exceptions to the Parol Evidence Rule Parol Evidence Rule

Show certain terms were agreed to Show certain terms were agreed to but incorrectly typed.but incorrectly typed.Prove someone was persuaded by Prove someone was persuaded by fraud.fraud.

Form of a Contract

The Best Evidence Rule The Best Evidence Rule

The courts usually require that the The courts usually require that the original copy of a written agreement original copy of a written agreement be submitted into evidence rather than be submitted into evidence rather than any sort of copy. any sort of copy.

This requirement is generally referred This requirement is generally referred to as the to as the best evidence rulebest evidence rule. .

Form of a Contract

This rule means a court would look This rule means a court would look with disfavor at photocopies or carbon with disfavor at photocopies or carbon copies of the written agreement, copies of the written agreement, preferring instead to see the original preferring instead to see the original agreement. agreement.

Form of a Contract

When a contract is reduced to writing, When a contract is reduced to writing, each party receives an original version each party receives an original version of the contract. Such original versions of the contract. Such original versions are generally referred to as are generally referred to as duplicate originalsduplicate originals. .

Form of a Contract

Pre-Learning Question Pre-Learning Question

What do you do when you are asked to sign a legal document?

Form of a Contract

Changing the Writing Changing the Writing

Signing a business or legal document Signing a business or legal document starts a chain events that may be starts a chain events that may be difficult to control. difficult to control.

Be very careful when signing any legal Be very careful when signing any legal document and follow these guidelines.document and follow these guidelines.

Form of a Contract

Guidelines for Signing Documents Guidelines for Signing Documents

Read the entire text of the Read the entire text of the document before you sign it.document before you sign it.If you don’t understand something If you don’t understand something or don’t agree to it, cross it out or don’t agree to it, cross it out before you sign. Have the other before you sign. Have the other party initial it.party initial it.

Form of a Contract

Don’t be afraid to make changes on Don’t be afraid to make changes on a printed form. a printed form. If any promises are made to you, If any promises are made to you, write them in.write them in.

Form of a Contract

Refuse to sign if you do not agree Refuse to sign if you do not agree with everything contained in the with everything contained in the writing. writing. Consider asking a lawyer to review Consider asking a lawyer to review the agreement if it contains the agreement if it contains complicated or ambiguous complicated or ambiguous language.language.

Form of a Contract

Reviewing What You Learned

1. What is the parol evidence rule?

Section 10.2 Assessment

Form of a Contract

Evidence of oral statements made before the signing of the contract cannot be presented in court to change or add to the terms of the agreement.

Answer

Form of a Contract

2. What are the exceptions to the parol evidence rule?

Form of a Contract

Parol evidence may be introduced to explain some point that is not clear, to show certain terms were typed incorrectly, or to prove fraud.

Answer

Form of a Contract

3. What is the best evidence rule?

Form of a Contract

The courts usually require that the original copy of a written agreement be submitted into evidence rather than any sort of copy.

Answer

Form of a Contract

4. What rules govern the changes in a written contract?

Form of a Contract

Rules include: read the entire text; if you don’t agree to or understand something, cross it out before you sign and have the other party initial it.

Answer

Form of a Contract

Rules also include: don’t be afraid to make changes to the printed form; refuse to sign if you do not agree with everything contained in the writing; and consider getting a lawyer’s advice.

Answer

Form of a Contract

Critical Thinking ActivityParol EvidenceWhat is the legal philosophy behind the parol evidence rule?

Form of a Contract

Critical Thinking Activity AnswerParol Evidence

The rule is intended to clarify and avoid disputes about the intent of the parties.

Form of a Contract

Legal Skills in ActionParol Evidence Rule Your friend, Pete, is about to lease an apartment. Although he intends to stay in the apartment for an entire year, he thinks he might have to move to another state before that time.

Form of a Contract

Legal Skills in ActionParol Evidence Rule Pete tells you the lease he is about to enter has an acceleration clause, which says that if he breaks his lease, the rest of the rent is due at that precise moment.

Form of a Contract

Legal Skills in ActionParol Evidence Rule The landlord has told Pete to ignore that particular clause. Write to your friend explaining how the parol evidence rule affects his lease.

Form of a Contract

Legal Skills in Action AnswerParol Evidence Rule If Pete’s lease was presented in court, the terms of the acceleration clause could be enforced because the landlord only agreed orally to ignore the clause before the lease was signed.

Special Rules and FormalitiesSpecial Rules and FormalitiesEnd of Section 10.2End of Section 10.2