Mandy enters a written agreement to rent a motor home for six days.Persons under age 25 are not permitted to drive it under terms of the written agreement.Mandy calls the rental company on the third day and asks if Dave,age 23,can drive it.The rental company says Dave can drive it if Mandy pays an extra $10 per day when he returns the motor home.When Dave drives in to return the motor home,the rental company refuses to return the $500 deposit because the written contract says any breach of the contract will result in the forfeiture of the entire damage deposit.Which is true?

Question

Quizplus · Accepted Answer

The parol evidence rule does not apply because there is no ambiguity in the written contract. The rental company's oral modification to allow Dave to drive for an extra fee is not enforceable because it contradicts the written contract. However, the forfeiture of the entire damage deposit is excessive and may not be enforceable. Mandy should seek legal advice to determine the validity of this clause.

Mandy Enters a Written Agreement to Rent a Motor Home