A buyer agrees to purchase "two cars" from an elevator company.All material terms are contained in a written contract,but "two cars" is not further defined.Which of the following evidence can be admitted if there is a dispute over the meaning of "two cars?"
A) Oral evidence that before the signing of the contract the parties intended the contract to be for the purchase of three cars.
B) Oral evidence that before the signing of the written agreement the elevator company said it would extend its normal one-year warranty (which is stated in the written contract) to two years.
C) Oral evidence that the word "car" refers to an elevator, because that is how the word "car" is used in the elevator industry, and that it does not refer to any of the company's automobiles.
D) Written evidence from prior to the signing of the written contract that the parties intended the contract to be for the purchase of three cars.
E) The parole evidence rule prevents any additional evidence from being considered, even if terms are not clear on their face.

Question

Quizplus · Accepted Answer

Oral evidence that explains the meaning of a term or word within a specific industry or context is admissible to help interpret the contract. In this case, the oral evidence that "car" refers to an elevator in the elevator industry is relevant and admissible. The other options are not relevant to the dispute over the meaning of "two cars" and would not be admissible. The parole evidence rule does not apply in this scenario since the contract is not clear on its face, and therefore additional evidence may be considered.

A Buyer Agrees to Purchase "Two Cars" from an Elevator