Conditions

Conditions

1. Parole evidence rule

   • Emphasize written K; Signer of a written K bound even if they havent read it or the contents are different
     • Oral Evidence only valid in cases where the written K is not the full K
       • Galleen v Allstate
       • valid even when it adds to, subtracts from varies or contradicts written K if:
         • Shows K invalid due to fraud/misrep/mistake/lack of C/ Lack of cotractual intention
           • Important for Fraud and Neg. Misrepresentation
         • To support a claim for rectification of a term
         • To Establish a condition precedent to the agreement
         • To establish a collateral agreement
           • Important for Warranties
         • To support allegation that document itself was not the full agreement
         • To support tort claim of breach of duty of care
         • As a general rul "a collateral agreement cannot be established where it is inconsistent with or contradicts the written agreement"
           • Galeen
   • Cobin: Newest agreement takes precedence over older agreements; therefore warranties
   • L'estrange v Graucob

2. Condition: A term of the contract that if breached, gives rise to damages and the right to suspend further performance of K

   • Must deprive of all benefit of the K
     • Hong Kong Fir Shipping Co.
     • Sail Labrador
     • Jacobs & Youngs

3. Warranty: Term of K that if breached only gives rise to damages

   • Breach would not deprive the person of the whole benefit of the K
     • Honk Kong Shipping