Problem 5-1

Problem 5-1 - Contracts 11/12 Parol Evidence Rule Problem...

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Contracts 11/12 Parol Evidence Rule Problem 5-1 Facts : In 2003 Herbert Keynes (Minneapolis) answered A&B Tax Preparers’ advertisement seeking a local manager for its Neville, California office. They hired him, and he signed a contract that said “Manager shall be entitled to 50% of the net profits of the office.” The policy manual stated that “Profit percentages for managers are guaranteed only for the first two years of employment. The company reserves the right to adjust percentages in subsequent years based on the profitability of the local branch.” The contract also had a merger clause . Keynes share of profits increased from $30,000 in 2004 to over $90,000 for the year ending January 31, 2006. In September 2006, A&B wrought Keynes a letter that said effective February 1, 2007, his percentage of net profits would be reduced from 50% to 40%. Keynes refused to return the letter with his signature, and he was released. Parol evidence – Keynes said he had a conversation with Adams who assured him that
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This note was uploaded on 04/10/2011 for the course LAW 501 taught by Professor Roy during the Fall '08 term at Ole Miss.

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Problem 5-1 - Contracts 11/12 Parol Evidence Rule Problem...

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