Saturday, April 26, 2008

CPA_MCQ_16

Rogers and Lennon entered into a written computer consulting agreement that required Lennon to provide certain weekly reports to Rogers. The agreement also stated that Lennon would provide the computer equipment necessary to perform the services, and that Rogers' computer would not be used. As the parties were executing the agreement, they orally agreed that Lennon could use Rogers' computer. After executing the agreement, Rogers and Lennon orally agreed that Lennon would report on a monthly, rather than weekly, basis. The parties now disagree on Lennon's right to use Rogers' computer and how often Lennon must report to Rogers. In the event of a lawsuit between the parties, the parol evidence rule will:

a. Not apply to any of the parties' agreements because the consulting agreement did not have to be in writing.

b.Not apply to any of the parties' agreements because the consulting agreement did not have to be in writing

c.Not prevent the admission into evidence of testimony regarding Lennon's right to report on a monthly basis.

d.Not apply to the parties' agreement to allow Lennon to use Rogers' computer because it was contemporaneous with the written agreement.

Correct Ans. = C

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