Wednesday, May 17, 2006

contracts - integration clause

Glassmere Fuel Service, Inc. v. Clear - Superior Court - May 15, 2006

http://www.courts.state.pa.us/OpPosting/Superior/out/a34027_05.pdf

Plaintiff sued Defendant for its failure to comply with an agreement that would have turned D's convenience store into a BP gas station. Plaintiff alleged the Defendant "failed to obtain financing in violation of an 'implied term' of the agreement. Defendant noted that the agreement did not expressly require it to obtain financing and that the agreement's integration clause barred Plaintiff's action.

Held, integration clause barred inconsistent parol evidence of alleged prior representations, unless the representations were omitted because of fraud, accident or mistake. Where contract terms are clear and unambiguous, there is no need to consider other evidence to aid in interpretation.

The doctrine of necessary implication does not apply unless it is "necessary to prevent injustice and it is abundantly clear that the parties intended to be bound by" the alleged missing term, which was not found to be the case here. Plaintiff had other remedies for Defendant's failure to fulfill the contract.