Paulsen and Warren Enter into a Written Contract

question 5

Multiple Choice

Paulsen and Warren enter into a written contract.Warren later sues Paulsen for breaking a certain oral promise that Warren alleges is part of their deal.Paulsen's oral promise is not included in the terms of the written contract.At trial,Warren attempts to introduce evidence about the oral promise,and Paulsen's attorney objects to the admission of the evidence on the ground that it violates the parol evidence rule.A court would refuse to admit evidence about Paulsen's oral promise if:

• A)the oral promise was made after the written contract was signed.
• B)the oral promise was made before the written contract was signed and contradicts a term of the written contract.
• C)the written contract is partially integrated and the oral promise is consistent with the terms of the written contract.
• D)the evidence about the oral promise is being offered to prove that Warren entered into the contract as a result of Paulsen's fraud.

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Definitions:

Payback Period

The duration of time it takes to recoup the initial investment in a project or asset, calculated by dividing the investment amount by the annual cash inflow.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used to estimate the profitability of potential investments.

Net Present Value

A financial metric that calculates the present value of all cash flows associated with a project, considering both inflows and outflows, to assess profitability.

Initial Investment

The amount of money used to start a project, investment, or venture for the first time.