Regarding Damian's Assertion That Under the Parol Evidence Rule He

question 12

Multiple Choice

Regarding Damian's assertion that under the parol evidence rule he had the right to identify the house referenced in the contract,which of the following is true?

• A)Damian is incorrect because the parol evidence rule would not apply in situations involving an ambiguity.
• B)Damian is incorrect because under the parol evidence rule,Frida,as the buyer,would be allowed to identify the subject matter in the event of a discrepancy.
• C)Damian is incorrect because under the parol evidence rule,the judge would likely allow oral evidence regarding the house at issue in order to clarify an ambiguity.
• D)Damian is correct.
• E)Damian is incorrect because the parol evidence rule would not apply in the absence of a merger clause.

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Definitions:

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties in an arm's length transaction.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Trading Securities

Financial assets that are bought and sold for the purpose of generating profits from short-term fluctuations in price.

Unrealized Loss-Income

Gains or losses that have occurred on paper but are not yet realized through a transaction.