Protecting the integrity of a written agreement : a comparative analysis of the parol evidence rule, merger clauses and no oral modification clauses in U.S., English, German and Swiss law and international instruments (CISG, PICC, PECL, DCFR and CESL) / Andreas Müller.
2013
K840 .M85 2013 (Map It)
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Title
Protecting the integrity of a written agreement : a comparative analysis of the parol evidence rule, merger clauses and no oral modification clauses in U.S., English, German and Swiss law and international instruments (CISG, PICC, PECL, DCFR and CESL) / Andreas Müller.
Published
The Hague, The Netherlands : Eleven International Publishing, [2013]
Copyright
©2013
Call Number
K840 .M85 2013
ISBN
9789462360730 (hd. bd.)
9462360731 (hd. bd.)
9789460948107 (E-book)
9462360731 (hd. bd.)
9789460948107 (E-book)
Description
xxiv, 393 pages ; 25 cm.
System Control No.
(OCoLC)864460969
Summary
This book offers a comprehensive comparative overview of the effects of pre-contractual statements and agreements and post-contractual informal modifications on written contracts. It analyzes the respective case law and scholarly writing of four different jurisdictions (the US, England, Germany and Switzerland) and five uniform instruments (the CISG, PICC, PECL, DCFR and CESL) in depth, showing commonalities and differences. Topics covered are comparative contract law, modifications of (written) contracts, parol evidence rule, merger clauses, entire agreement clauses, integration clauses, no oral modification clauses, presumption of accuracy and completeness of a written contract, integrative effect of a written agreement. The book provides guidance for drafting written contracts and is of interest to practititoners and academics interested in comparative contract law.
Note
This book offers a comprehensive comparative overview of the effects of pre-contractual statements and agreements and post-contractual informal modifications on written contracts. It analyzes the respective case law and scholarly writing of four different jurisdictions (the US, England, Germany and Switzerland) and five uniform instruments (the CISG, PICC, PECL, DCFR and CESL) in depth, showing commonalities and differences. Topics covered are comparative contract law, modifications of (written) contracts, parol evidence rule, merger clauses, entire agreement clauses, integration clauses, no oral modification clauses, presumption of accuracy and completeness of a written contract, integrative effect of a written agreement. The book provides guidance for drafting written contracts and is of interest to practititoners and academics interested in comparative contract law.
Bibliography, etc. Note
Includes bibliographical references (pages 361-383) and index.
Record Appears in
Table of Contents
Preface
xi
Abbreviations
xiii
1.
Introduction
1
2.
Formal Requirements Relating to the Formation of a Contract
9
2.1.
Introduction
9
2.2.
Rationales for Formal Requirements
9
2.3.
Statutory Formal Requirements
10
2.3.1.
The Anglo-American Statute of Frauds
10
2.3.2.
Jurisdictions with No (General) Formal Requirements
12
2.3.3.
Comparison
13
2.4.
Contractual Formal Requirements
13
2.5.
Summary
14
3.
Statutory and Judicial Protection of a Written Agreement's Integrity against Prior and Contemporaneous Agreements
15
3.1.
Introduction
15
3.2.
Determining the Subject Matter of the Agreement
16
3.2.1.
The Integrative Effect of Reducing an Agreement to Writing
16
3.2.1.1.
Introduction
16
3.2.1.2.
The Anglo-American Parol Evidence Rule
17
3.2.1.2.1.
Origin and History
17
3.2.1.2.2.
Rationales
22
3.2.1.2.3.
Legal Effects
25
3.2.1.2.4.
Criticism
32
3.2.1.3.
The Rebuttable Presumption of Accuracy and Completeness of a "Writing (Vermutung der Vollstandigkeit und Rkhtigkeit der Urkunde)
35
3.2.1.4.
The Legal Situation in Jurisdictions without a Parol Evidence Rule or a Presumption of Accuracy and Completeness of a Writing
36
3.2.1.5.
No Integrative Effect on Consistent Implied Terms, Course of Dealing, Usage of Trade and Course of Performance
39
3.2.1.6.
No Integrative Effect on Collateral Agreements
41
3.2.1.7.
No Integrative Effect on Subsequent Contract Modifications
44
3.2.1.8.
The Legal Nature of the Integrative Effect
45
3.2.1.9.
Differentiation from Formal Requirements
47
3.2.2.
Prerequisites of the Integrative Effect
47
3.2.2.1.
Existence of a Written Agreement
48
3.2.2.1.1.
Written Agreement
48
3.2.2.1.2.
Electronic Communication
49
3.2.2.1.3.
Individually Negotiated and Standard Contracts
52
3.2.2.2.
Existence of a Valid and Enforceable Agreement
58
3.2 2 2 1
No Binding Agreement
59
3.2.2.2.2.
Lack of Consideration
60
3.2.2.2.3.
Fraud or Misrepresentation
62
3.2.2.2.4.
Mistake
66
3.2.2.2.5.
Other Reasons of Invalidity
69
3.2.2.2.6.
Legal Nature of the Agreement
69
3.2.2.2.7.
Consumer Protection Acts
70
3.2 2 2 8
Agreements Subject to Oral Conditions Precedent
70
3.2.2.3.
Existence of an Integrated Agreement
73
3.2.3.
Different Approaches to Establish Integration
73
3.2.3.1.
The Different Degrees of Integration: Unintegrated, Partially Integrated and Completely Integrated Agreements
73
3.2.3.2.
The Parol Evidence Rule's Two-Step Test
74
3.2.3.2.1.
The First Step: Is the Written Agreement Integrated or Unintegrated? The Test of Integration
75
3.2.3.2.2.
The Second Step: Is the Integration Complete or Partial?
78
3.2.3.2.3.
Determining the Degree of Integration: Question of Fact or Law?
94
3.2.3.3.
Integration Rebuttably Presumed Based on an Apparently Complete Writing
95
3.2.3.4.
Integration Determined Based on the Actual Intent of the Parties without Restrictions
98
3.2.3.4.1.
CISG
99
3.2.3.4.2.
PICC, PECL, DCFR and CESL
119
3.2.3.4.3.
Swiss Law
124
3.2.3.4.4.
Comparison with the Parol Evidence Rule and the Presumption of Accuracy and Completeness of a Writing
130
3.2.3.5.
In Particular: Confirmatory Memoranda in Commercial Dealings
131
3.2.3.6.
The Impact of a Merger or Integration Clause
145
3.2.3.7.
Current Global Legal Situation de lega lata and de lege ferenda
146
3.3.
Interpretation of the Subject Matter of the Agreement
146
3.3.1.
Restricted to the Writing: The Anglo-American Plain Meaning Rule
147
3.3.2.
Not Restricted to the Writing: Swiss and German Law, CISG, PICC PECL, DCFR and CESL
157
3.3.3.
Current Global Trend?
160
3.4.
Implied Terms and Incomplete Agreements
162
3.5.
Final Conclusions
170
3.6.
Summary
173
4.
Contractual Instruments for the Protection of a Written Agreement's Integrity against Prior and Contemporaneous Agreements: Merger Clauses
177
4.1.
Introduction
177
4.2.
Objectives of Merger Clauses
178
4.3.
Distinction from Other Similar Clauses
179
4.3.1.
Disclaimer, Exclusion of Liability and Exemption Clauses
179
4.3.2.
Non-Reliance Clauses
180
4.3.3.
No Oral Modification Clauses
182
4.3.4.
`Schriftformklauseln (Contractual Formal Requirements)
183
4.4.
Admissibility of Merger Clauses
183
4.4.1.
In General
183
4.4.1.1.
Anglo-American Law
183
4.4.1.2.
CISG
184
4.4.1.2.1.
Article 6 CISG Permits (Partial) Exclusion of the CISG
184
4.4.1.2.2.
Validity to Be Established Pursuant to Domestic Law
186
4.4.1.2.3.
Interpretation Pursuant to Article 8 CISG
187
4.4.1.3.
PICC, PECL, DCFR and CESL
187
4.4.1.4.
Swiss and German Law
188
4.4.2.
Merger Clauses Contained in Individually Negotiated Contracts
190
4.4.3.
Merger Clauses Contained in Standard Terms
190
4.4.3.1.
Introduction
190
4.4.3.2.
Surprising Terms
191
4.4.3.3.
The Preference for Individual Agreements
192
4.4.3.4.
Judicial Control of Standards Terms
196
4.4.3.4.1.
U.S. Law
196
4.4.3.4.2.
English Law
197
4.4.3.4.3.
German Law
203
4.4.3.4.4.
Swiss Law
209
4.4.3.4.5.
International Instruments: CISG, PICC, PECL, DCFR and CESL
210
4.4.3.4.6.
Common Criteria
212
4.5.
Legal Effects of Merger Clauses
212
4.5.1.
Extrinsic Evidence to Show Ineffectiveness of the Merger Clause is Admissible
213
4.5.2.
Legal Effects with Regard to Determining the Subject Matter of the Agreement
213
4.5.2.1.
Introduction
213
4.5.2.2.
Formalistic Approach: Merger Clauses Conclusively Establish Complete Integration of the Agreement
214
4.5.2.3.
Liberal Approach: The Parties' Intent Governs the Merger Clauses' Legal Effects
219
4.5.2.4.
Middle Course: Merger Clauses Establish a Strong Presumption of Complete Integration of the Agreement
225
4.5.2.5.
Alternative Approach: Distinction between Dickered and Standard `Boilerplate' Clauses
228
4.5.2.5.1.
Anglo-American Law
228
4.5.2.5.2.
PECL and DCFR
229
4.5.2.5.3.
Other Legal Systems
234
4.5.2.6.
The CESL's Consumer-Centered Approach: Distinction between Business-to-Business and Business-to-Consumer Contracts
235
4.5.2.7.
Current Gobal Trend and Proposal de lege ferenda
236
4.5.2.8.
The Impact of the Omission of a Merger Clause
237
4.5.2.9.
Exclusion of Explicit Oral Terms and Warranties
238
4.5.2.10.
Exclusion of Implied Terms and Warranties
244
4.5.2.11.
The Limits
246
4.5.2.11.1.
Evidence to Show the Absence of a Binding, Enforceable or Valid Agreement
246
4.5.2.11.2.
Evidence to Show Fraud or Misrepresentation
247
4.5.2.11.3.
Usage of Trade and Course of Dealing
250
4.5.2.11.4.
Course of Performance
251
4.5.2.11.5.
Collateral Agreements
251
4.5.2.11.6.
Subsequent Agreements
252
4.5.3.
J.J Legal Effects with Regard to the Interpretation of the Agreement
253
4.5.4.
Legal Effects with Regard to Deciding Omitted Cases
257
4.6.
Drafting Merger Clauses
258
4.7.
Final Conclusions
261
4.8.
Summary
262
5.
Statutory Protection of a Written Agreement's Integrity against Subsequent Modifications
265
5.1.
Introduction
265
5.2.
Statutory General Formal Requirements
265
5.3.
Statutory No Oral Modification Rules?
266
5.4.
Summary
267
6.
Contractual Protection of a Written Agreement's Integrity against Subsequent Modifications: No Oral Modification Clauses
269
6.1.
Introduction
269
6.2.
Objectives of No Oral Modification Clauses
270
6.2.1.
Evidentiary Function
271
6.2.2.
Channeling Function
272
6.2.3.
Cautionary Function
273
6.2.4.
Complementing Merger Clauses
273
6.2.5.
Limitation of Authority
274
6.3.
Requirements as to No Oral Modification Clauses
275
6.4.
Validity of No Oral Modification Clauses
276
6.4.1.
In General
276
6.4.2.
No Oral Modification Clauses Contained in Standard Terms
276
6.4.2.1.
Introduction
276
6.4.2.2.
Surprising Terms
277
6.4.2.3.
The Preference for Individual Agreements
277
6.4.2.4.
Judicial Control of Standard Terms
281
6.4.2.4.1.
U.S. Law
281
6.4.2.4.2.
English Law
281
6.4.2.4.3.
German Law
282
6.4.2.4.4.
Swiss Law
285
6.4.2.4.5.
International Instruments: CISG, PICC, PECL, DCER and CESL
285
6.4.2.5.
Conclusion
286
6.5.
Legal Effects of No Oral Modification Clauses
286
6.5.1.
Introduction
286
6.5.2.
Doctrinal and Policy Consideration: Should No Oral Modification Clauses in Principle Be Enforced or Not?
290
6.5.2.1.
The freedom of Contract Argument Is Inconclusive
290
6.5.2.2.
Commercial Need for Legal Certainty
292
6.5.2.3.
Policy Reasons against the Enforcement of No Oral Modification Clauses
293
6.4.2.4.
Conclusions
295
6.5.3.
Preliminary Remark: Requirements as to the Form of Modifications under No Oral Modification Clauses
296
6.5.4.
Approach 1: Oral or Implied Rescission of No Oral Modification Clauses Is Admissible
300
6.5.4.1.
German Law
300
6.5.4.2.
Swiss Law
304
6.5.4.3.
U.S. Common Law
305
6.5.4.4.
English Law
311
6.5.4.5.
PECL and DCFR
312
6.5.4.6.
CESL?
314
6.5.5.
Approach 2: Rescission of No Oral Modification Clauses Is Admissible Only in the Required Form
314
6.5.5.1.
Introduction
314
6.5.5.2.
German Law
315
6.5.5.3.
U.C.C., Some U.S. State Statutes and Case Law
316
6.5.5.4.
English Law
318
6.5.5.5.
CISG
318
6.5.5.6.
PICC
320
6.5.6.
Approach 3: Rescission of No Oral Modification Clauses Is Admissible Only in the Required Form Unless the Purpose of the Clause Is Not Impaired by an Oral or Implied Modification
321
6.5.7.
Approach 4: Rescission of No Oral Modification Clauses Is Admissible Only in the Required Form, But Subject to the Reliance Exception
322
6.5.7.1.
Introduction
322
6.5.7.2.
German Law
322
6.5.7.3.
Swiss Law
324
6.5.7.4.
U.S. Law
324
6.5.7.5.
English Law
329
6.5.7.6.
CISG
330
6.5.7.6.1.
Conduct Inducing Reliance
330
6.5.7.6.2.
Reliance
333
6.5.7.6.3.
Must Reliance Be Detrimental?
334
6.5.7.6.4.
Must Reliance Be Reasonable?
335
6.5.7.6.5.
Legal Effects of Reliance
337
6.5.7.7.
PICC, PECL and DCFR
338
6.5.7.8.
CESL
340
6.5.7.9.
Common Criteria for Reasonable Reliance
340
6.5.7.10.
The Reliance Approach as a General Modei?
343
6.6.
Final Conclusions
347
6.7.
Summary
349
7.
Final Remarks
353
Bibliography
357
Index of Materials
384
Index
385