In fact when this rule comes into practice the difference is only semantic as

In fact when this rule comes into practice the

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reduced in writing or must all the terms of the contract be so reduced. In fact, when this rule comes into practice, the difference is only semantic as both cases went on to consider whether the evidence sought to be adduced came within any of the proviso in s92. Downloaded by Adli Hakim ([email protected]) lOMoARcPSD|4226454
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3. A pre-existing contractual statement that is binding is a term but it cannot contradict the written contract. A collateral contract, however, can. Explain and elaborate. Exceptions: a. Invalidate documents b. Separate original agreement c. Not inconsistent ( different from CC, because CC can bring in if the oral agreement is not consistant with the written agreement) Parol Evidence rule seprated to a. Statutory s91,92 b. Commonlaw: CC and Promissory Estoppel Collateral contract normally used to overcome the paral evidence rule to admit the pre-contractual statements which had not been incorporated into the written agreement. The oral promise is a separate contract but is collateral to the main transaction. This contract is existed side by side with the main contract therefore it does not offend the parol evidence rule. In the case Kluang Wood Products Sdn Bhd v Hong Leong Finance Berhad , the court held that there was a pre contractual statements and it was admissible pursuant s 92 (b). Therefore, the respondent had to compensate the damages suffered by the appellant. The collateral contract also exist side by side yet independent , the court held that the an oral promise given at the time of contradicting which induces the other party to sign the agreement can override any inconsistent of the written agreement. In fact, this extrinsic evidence does not offend the main contract. It constitutes a separate contract which exist side by side with the main agreement. In Tan Swee Hoe case, the appellants orally agreed to the respondents that they can stay in their premises as long as they wish to on payment $14,000 for tea money. However this oral agreement was not imported into the written agreement that was subsequently signed by the both parties. Therefore a dispute arise, whether the oral agreement should be legal and bound by the appellants. The court held that since the oral promise was a separate agreement which exist side by side with the main agreement, It can override the inconsistent written term in the main agreement but not be imported into it. In Tan Chong case, the representation made by the appelant’s that the car complied with the Australian Design Regulations was in conflict with condition No 5 printed on the reverse side of the Buyer’s Order signed by the respondent. The court held that the representations must be given the right to override and the printed condition must therefore be rejected. The collateral contract cannot destroy the main contract. Even though the collateral contract has the power to override the inconsistent term of the main agreement, it cannot destroy it. The CC only exists when there is a main contract. In the case, the defendant wanted to return the two excavators to the plaintiff without any financial liability although he had used it for two months. His intention here was
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