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Topic: Business
Number of pages / Number of words: 9 / 2374
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If the parties intend their agreement be affected by other unwritten factors, then the rule must bend to accommodate those factors. The parol evidence rule will not be strictly applied in partly written and partly oral contracts, contracts that are implied subject to some trade usage or custom,

contracts which are suspended by verbal agreement, invalid contracts, contracts where some mistake has been made in reducing the contact to writing, and where the parol evidence rule is required to solve some ambiguity or uncertainty...

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That is, only an original party may enforce or be bound by the terms of that contract.

However, a form of the collateral contract may circumvent this: ?Where the collateral contract is in tripartite form?.then the privity of contract rule is avoided'.

There are two contexts in which we can discuss collateral contracts...

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