Note – Reflections on Riverisland: Reconsideration of the Fraud Exception to the Parol Evidence Rule
Vol: 65, Issue: 2, Page: 581
2014
- 143Usage
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- Abstract Views17
Artifact Description
The California Supreme Court recently and unanimously Planning overruled a longstanding precedent regarding the fraud exception to the Parol Evidence Rule in Riverisland Cold Storage, Inc. v. Fresno-Madera Production Credit Association. Prior to Riverisland, the Parol Evidence Rule did not allow evidence of promissory fraud. Now, evidence of promissory fraud at variance with the terms of the writing is admissible. Riverisland discourages fraudulent practices and creates a clear rule that is consistent with the language of California’s Parol Evidence Rule. It also recognizes the cheap jerseys reality that many people wholesale nfl jerseys do not read or understand the contracts that they sign and the psychological biases Hello that play a role in perception and decisionmaking. The new precedent, however, exposes drafting parties to both intentionally and unintentionally fabricated claims from non- drafting parties. Drafting parties are also at risk of unpredictable outcomes from juries In who might be swayed by testimony of alleged fraudulent promises. Because the new standard favors non-drafting parties, the cost of contracting has shifted from non-drafting parties cheap nba jerseys to drafting parties.This Note suggests that, to balance the costs of Park contracting between drafting and non- drafting parties, meaningful assent to the specific terms at issue should be world! required for a party to be able to exclude evidence of alleged promissory fraud. Meaningful assent could be accomplished by having a one-page summary and disclaimer as to the key terms of the contract. If this summary/disclaimer page succeeds in being short, simple, and specific, then California cheap jerseys courts should find mutual assent as to a contract’s terms cheap jerseys and specific disclaimers, and preclude evidence of promissory fraud that is at variance with those terms.
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