Ann bought a car from the Used Car Agency under a written contract. She purchase

Question

Ann bought a car from the Used Car Agency under a written contract. She purchased the car in reliance upon the dealership’s representation that the car had never been wrecked and could be driven at least 2,000 miles without adding oil. Thereafter Ann discovered that the car had, in fact, been previously wrecked and rebuilt, that it used excessive quantities of oil, and that Used Car was aware of these facts when the car was sold. Ann brings an action to rescind the contract and recover the purchase price. Used Car objects to the introduction of oral testimony concerning representations of its agents, claiming the protection of the Parol Evidence Rule. Does the rule apply in this case? Explain.

Explanation / Answer

Ann can bring an action against used car agency for false representation made that the car had never beeen wrecked and could be driven at least 2,000 miles without adding oil. Later it is found against the representation of used car dealership representation that the car wrecked and rebuilt and that it used excessive quantities of oil. Ann can rescind the contract and recover prices if it proves that used car agency made such false representations. This comes under Fraud, which makes the contract voidable at the opiton of Ann.

Parol Evidence Rule is not applicable in this case,as it does not relate to matters relating to the terms of written contract. Another important point is that a contract may be oral or written. Here, oral representations made by used car agency proved false and these words seem to be made intentionally to fraud Anne. So, anne can bring an action against used car agency for recovery of price by rescinding the contract.

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