A Written Agreement Was Signed by Two Parties and It

question 78

Multiple Choice

A written agreement was signed by two parties and it was intended to be their entire agreement.The parol evidence rule will prevent the admission of evidence that is offered to:

• A)prove the existence of additional terms of the agreement to contradict the written terms of the contract.
• B)prove the existence of a subsequent oral agreement that modifies the contract.
• C)explain the meaning of an ambiguity in the written contract.
• D)establish that fraud had been committed in the formation of the contract.

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Definitions:

Future Price

The predicted price of a commodity, security, or currency in a futures contract for delivery and payment at a specified future date.

General Motors

A multinational corporation based in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Moral Hazard

A situation where one party in an agreement can take risks because the other party bears the consequences of those risks.

Theft

The act of stealing, or unlawfully taking someone else's property without their permission with the intent to permanently deprive them of it.