Question

The following clause is part of your employment contract: "Any modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void." Which one of the following is true?

a.this is an "entire agreement clause," whereby a court can only look at the words in the contract; oral conversations and promises will not be considered
b.this is a clause that primarily protects the interests of the employee
c.this is a clause that courts rarely enforce because it too often favours the employer
d.this is a "severability clause," and it ensures that if one provision in a contract is unenforceable, the rest of the contract will still be enforceable

Answer 1

The clause in question is an entire agreement clause which requires that modifications to the employment contract be in writing and signed by both parties to be valid.

Step-by-step explanation:

The clause from the employment contract, "Any modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void," is known as an entire agreement clause. This means that any modifications, amendments, or changes to the employment contract must be made in writing and signed by both the employee and employer; verbal agreements or promises are not recognized.

Such clauses reaffirm that the written contract embodies all terms of the agreement between the parties and prevent disputes over alleged oral agreements not captured within the written contract. Courts frequently enforce these clauses as they contribute to the clarity and stability of contractual relationships.