BUS311_chapter_05

Clearly the theft is illegal but most would say not

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Unformatted text preview: the legal portion, or if voiding the contract would result in a protected party being injured. For example, if Acme Insurance is not licensed to do business in Rhode Island but nonetheless issues a homeowner’s policy to Fred, who lives there, Acme will not escape liability on the policy when Fred’s house burns down by claiming it was void for illegality. 10/26/12 5:37 PM Section 5.6 Chapter Summary CHAPTER 5 Contract Interpretation and the Parol Evidence Rule Before we leave this chapter, there is one more rule that must be mentioned. Although it does not relate to the legal status of a contract in terms of voidability and the like, the parol evidence rule as a practical matter often determines what the parties’ obligations are under a contract. The rule states that if the parties have a written contract, then other evidence—either written or oral—that arose either before or at about the same time the written contract was made, that varies from what is stated in the written contract, cannot be admitted in...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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