Business Law 11th Edition by Kenneth Clarkson,Roger LeRoy Miller,Gaylord Jentz,Frank Cross

Exercise 14

The Parol Evidence Rule. Carlin Krieg owned a dairy farm in St. Joe, Indiana, that was appraised at $154,000 in December 1997. In August 1999, Krieg told Donald Hieber that he intended to sell the farm for $106,000. Hieber offered to buy it. Krieg also told Hieber that he wanted to retain a "right of residency" for life in the farm. In October, Krieg and Hieber executed a purchase agreement that provided Krieg "shall transfer full and complete possession" of the farm "subject to [his] right of residency." The agreement also contained an integration clause that stated "there are no conditions, representations, warranties or agreements not stated in this instrument." In November 2000, the house was burned in a fire, rendering it uninhabitable. Hieber filed an insurance claim for the damage and received the proceeds, but he did not fix the house. Krieg filed a suit in an Indiana state court against Hieber, alleging breach of contract. Is there any basis on which the court can consider evidence regarding the parties'negotiations prior to their agreement for the sale of the farm Explain. [ Krieg v. Hieber, 802 N.E.2d 938 (Ind.App. 2004)]