Business Law In a transaction for the sale of a warehouse, Standard Storage Comp
ID: 1124299 • Letter: B
Question
Business Law
In a transaction for the sale of a warehouse, Standard Storage Company told Tri-County Investment Corporation that all of the office furniture in the warehouse was included in the sales price. However, when Tri-County Investment Corporation received the written sales contract from Standard Storage Company, the sales contracted contained no mention of the office furniture contained within the building. The contract did state the following - “This document supersedes all oral promises relating to this sale.” Is the furniture included in the sales price? Why or why not? What remedy or remedies does/do each party have in this case? What should the parties have done in this situation to avoid possible litigation?
Explanation / Answer
No, the furniture is not the part of the contract. As per the parol evidence rule, if a writing which is integrated or forms the entire agreement of the party has a clause claiming that there will be no oral statement incorporated then the terms cannot be changed on the basis of prior negotiations, agreements or contemporaneous oral statements. Thus as the agreement does not include the furniture and the clauses which are mentioned in the document mentioned that it suspended any oral promises signifies that there is no deal on furniture.
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