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Contract Law - Parol Evidence, Omitted and Implied Terms

Contract Law - Parol Evidence, Omitted and Implied Terms

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Figuring out exactly what a contract requires can be challenging, especially with layers of prior discussions or missing details. This episode of the Study for the Bar in Your Car podcast helps you master the crucial concepts of Parol Evidence, Omitted, and Implied Terms, essential for your bar exam success.

We tackle the often-tricky Parol Evidence Rule. Learn how this rule aims for finality by generally preventing evidence of prior or contemporaneous agreements from contradicting a written contract intended as a final expression (an integration). We differentiate between complete (no outside evidence to contradict or add) and partial integration (outside evidence allowed to supplement, not contradict).

Crucially, we detail the many exceptions where outside evidence is allowed, including to:

  • Clarify ambiguous terms.
  • Show the context through course of performance, course of dealing, and usage of trade.
  • Prove a condition precedent.
  • Support defenses to formation (like fraud or mistake).
  • Argue for reformation of the writing due to mistake.
  • Present evidence of modifications made after the written contract.

Beyond the written words, we cover Contract Interpretation using the objective standard, and the hierarchy of terms courts use (express terms > course of performance > course of dealing > usage of trade). We also discuss the implied duty of good faith and fair dealing present in every contract.

What happens when terms are simply omitted? We explain how UCC Article 2 for the sale of goods allows courts to supply reasonable gap fillers for missing terms like price or delivery, provided parties intended a contract and the quantity is specified.

Learn about legally imposed Implied Terms, particularly the UCC implied warranties: the Implied Warranty of Merchantability (goods from a merchant are fit for ordinary purpose) and the Implied Warranty of Fitness for a Particular Purpose (seller knows buyer's specific need and buyer relies). Understanding the definition of a "merchant" is key here.

Mastering these nuances is non-negotiable for bar exam success. In the episode, Angela also shares her experience and highlights the importance of study strategy, mentioning how she hired a bar coach to help her stay focused, structure her study, and improve her MBE scores.

Tune into Study for the Bar in Your Car to get a clear, actionable breakdown of these complex topics. Listen and subscribe to transform your understanding and boost your bar prep confidence!

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