Chapter Five: Written Documents 1 Unsigned Documents 1



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Gallen v Allstate

Alford doesn’t like but has good list of parol evidence exceptions


Ratio

Admissible oral evidence:

  1. To show that the contract was invalid because of fraud, misrepresentation, mistake, incapacity, lack of consideration, or lack of contracting intention;

  2. To dispel ambiguities, to establish a term implied by custom, or to demonstrate the factual matrix of the agreement;

  3. In support of a claim for rectification;

  4. to establish a condition precedent to the agreement;

  5. to establish a collateral agreement

  6. In support of an allegation that the document itself was not intended by the parties to constitute the whole agreement

  7. In support of a claim for an equitable remedy, such as specific performance or rescission, on any ground that supports such a claim in equity, including misrepresentation of any kind, innocent, negligent or fraudulent

  8. In support of a claim in tort that the oral statement was in breach of a duty of care


3.Rectification


The parties have made an error in the writing of the document and they need the courts to reqrite the document to make it consistent with the paris’ intentions

U.S.A. v Motor Trucks, Limited

Mistake in drafting, party seeks rectification


Issue

Ratio

Notes

  • Parties execute a settling contract in which property “specified in schedule A goes to USA

  • No property is in that schedule

  • USA wants court to rectify mistake in drafting

Parol Evidence is admissible in rectification case because it is seeking an equitable remedy -> court is only seeking to modify the contract so that it can rectify the contract’s drafting error

oThe error in drafting needs to be a bilateral mistake for rectification



Bercovici v Palmer

Parties make deal, item is added that shouldn’t be, judge uses subsequent actions to determine intentions


Issue

Ratio

Notes

  • P is selling properties

  • After weird correspondence they agree

  • A property of P’s is mistakenly included but the address is incorrect

  • No one does anything for years

  • Should address be corrected or property removed?




In determining whether there was an error in the drafting of a contract that requires rectification, a judge may use the parties' actions subsequent to the execution of the contract, as evidence of what the intent the parties had in their mind when forming the contract.


  • Subsequent actions show it was a mistake to include

Sylvan Lake Golf and Tennis Club Ltd. v Performance Industries Ltd.

Mistake in drafting, court lays out 4 requirements for receiving rectification


Issue

Ratio

Notes




Four hurdles plaintiff must clear in order to attain rectification:

1.Must establish existence and content of prior oral agreement

2.Must show the defendant knew or ought to have known of the mistake in reducing the oral terms to writing

If allowing the mistake would be fraud, or equivalent to fraud, rectification ay be available



3.Must show the precise form in which the written instrument can be made to express the prior intention

4.The prior three hurdles must be proved "beyond a reasonable doubt"

Can be supported by documentary evidence

Can also be supported by the conduct of the parties, or "other proof"



Paget v Marshall

If parties can’t agree on what the contract should be. If there is no clear intention, contract may be void ad idum


Issue

Ratio

Notes

  • P is partitions home into a,b,c

  • D really wants b, P clearly states b is not for sale

  • B is included on accident

  • D tries to rely on mistake

Even if there is no basis for rectification there may be a claim that the contract was void ad idum from lack of consensus


  • Court allows individuals to either figure out their intentions and rectify together or the contract can be voided



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