Question

Homeowners enter into a contract negotiation with Builder to construct a home. After several months both parties sign a written agreement that does not contain a merger clause or otherwise indicate a complete expression of the agreement. After construction is underway but performance is not completed Homeowners sues Builder and attempts to submit evidence of a prior oral contract accepted by Builder. May Homeowners submit such prior evidence?
Group of answer choices

No, the statute of frauds requires the contract to be in writing and therefore no evidence of prior oral agreements may be introduced.

Yes, parol evidence may be introduced to prove elements of the agreement not reduced to writing.

No, the parol evidence rule prohibits introduction of prior oral agreement when the written agreement is a final expression

Yes, the parol evidence rule allows for introduction of oral evidence to illustrate prior performance.

Answer 1

Yes, the parol evidence rule allows for introduction of oral evidence to illustrate prior performance.

Under parol evidence law when the parties to a contract have made and signed a completely integrated written contract, evidence of antecedent negotiations (called "parol evidence") will not be admissible for the purpose of varying or contradicting what is written into the contract.

In this case the writtern contract is not finally integrated or does not show complete expression which means parol evidence can allow prior performance of oral contract.