Tony signed a contract agreeing to purchase a used, high-powered boat for $10,000 . Prior to signing the contract, the sales representative explained that the boat motor was guaranteed for six months for all labor and parts. The written contract
contained nothing about the warranty; however, it did have an integration clause in it. Tony had problems with the boat motor, causing expensive repairs. Tony returned the boat to the sales representative for the repairs, only to learn the salesman denied knowing anything about a six-month warranty. If Tony sues, discuss the likely outcome.
If the written agreement was intended to be the integrated contract of the parties, which the integration clause would indicate, then neither party may use parol evidence to contradict, vary, or add to its terms. Two exceptions to this rule include an incomplete or ambiguous contract; and fraud, misrepresentation or duress. Tony may be able to argue that a warranty clause is naturally within the scope of a sales contract and therefore the ambiguity should allow extrinsic evidence to be presented at trial. Also, Tony has an argument to claim that he was induced into entering into the contract because of the misrepresentations of the salesman. Tony may make these arguments; however, he would be arguing exceptions to the basic rule.
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Answer the following statement true (T) or false (F)
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a. recorder b. information-giver c. initiator–contributor d. orienter
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