McDougal Construction and Espinosa entered a contract to build the latter a two-story house.However,after the company began its construction,Espinosa decided that she wanted a terrace garden,making the house a three-story.McDougal indicated the additional costs to Espinosa and completed the job including the terrace garden - neither of which was in writing or included in the original contract.Espinosa paid McDougal the original amount,but did not pay the extra amount for the third story.Discuss if the court will admit an oral testimony of the McDougal's to the original contract.

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Gamze Hac?ibrahim · Accepted Answer

Final Answer : Oral evidence may be used to prove that the parties agreed to rescind or modify the terms of a written contract after entering into it.Subsequent negotiations to change or rescind the agreement are permitted,and evidence to that effect does not undermine the spirit of the parol evidence rule.The courts are most likely to rule in McDougal's favor since the oral testimony represents negotiation subsequent to the original agreement.

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