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Williston’s Rules

1. Which of the following states one of Williston’s Rules regarding the parol evidence rule?

Based upon the Nanakuli Paving and Rock Co. v. Shell Oil Co. case, which of the following statements is true?

A The court limited the interpretation of the contract terms to the “four corners” of the written agreement.

B The case applied the common law in a way “to promote flexibility in the expansion of commercial practices.”

C The parties’ course of performance was more important than trade usage to determine the terms of an agreement.

D The court refused to consider the “entire commercial context of the agreement.”

2. Which of the following states the best definition of the parol evidence rule?

A Agreements that are not in writing are invalid.

B A final agreement supersedes tentative terms discussed in earlier negotiations.

C Parol evidence is not admissible for contracts involving the purchase of land.

D Proposed, oral terms of a contract cannot become part of the final agreement.

3. Which of the following statements is NOT true regarding course of dealing, course of performance and usage?

A These topics are not applicable at common law.

B A party engaged in a trade is bound by the usages of that trade even if that party has no knowledge of the trade usage in question.

C At common law, a course of dealing is admissible whenever extrinsic evidence is admissible.

D Under the UCC, trade usage and course of dealing are always admissible, but the evidence is not always controlling.

4. Which of the following statements about the parol evidence rule is false?

A A writing that is final integrates the terms embodied in it.

B A writing intended by the parties to be a final embodiment of their oral agreement should be protected from attack by evidence of contradictory prior or contemporaneous agreements.

C Oral evidence of a term not in the written agreement is not admissible.

D The parol evidence rule applies when the last expression is a written and binding contract.



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