Question

Amelia franklin has a two-year contract to handle the accounting and payroll work for schwinn mopeds. the written agreement for her services provides that she will furnish her own computer and office supplies and that she will work from home. after amelia has been working with schwinn for nine months, the owner of schwinn asks amelia if she could come to the facilities two days per week so that she could be a resource for his questions and those of his managers. they orally agree that amelia will begin coming in two days per week and her contract price for the two years would be increased by 20%. which of the following is correct.

a. the parol evidence rule applies because amelia and schwinn are changing the fundamental aspects of their contract.
b. the parol evidence rule does not apply because it is a service contract.
c. the parol evidence rule does not apply because amelia was already performing under the contract.
d. the parol evidence rule does not apply to contract modifications.

Answer 1

The parol evidence rule does not apply to contract modifications that are made after the original contract has been executed. Amelia and Schwinn's oral agreement to modify the work arrangement and compensation falls outside the scope of the parol evidence rule. Hence, the correct option is D.

Step-by-step explanation:

The question pertains to the parol evidence rule, a legal doctrine in contract law that determines the admissibility of external evidence to explain, vary, or add to the terms of a written contract. Based on the scenario provided, Amelia has an existing contract and a subsequent oral agreement to change her working conditions and compensation. The parol evidence rule generally prohibits the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary contractual terms if the written contract is intended to be a complete and final expression of the parties' agreement.

However, the parol evidence rule does not apply to subsequent modifications of a contract if such modifications are agreed upon after the contract has been executed. Since Amelia and Schwinn have agreed to modify the terms after the contract began, the parol evidence rule would not apply to this subsequent modification. Therefore, the correct option in this scenario is D. The parol evidence rule does not apply to contract modifications.