Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 9

Malo, an architect, signed a contract with Gilman to design an office building. Nothing was said in the contract about the size, style, or maximum cost of the building, only an estimated cost. When the bids for the building came in, they were so much more than the estimated cost that Gilman decided not to build the building. He also refused to pay Malo for his services. In court, Gilman tried to introduce evidence that there had been conversations about maximum costs. Malo claimed that this was not possible under the parol evidence rule. Is Malo correct? (Malo v. Gilman, Ind. 379 N.E.2d 554)