The Parol Evidence Rule. Carlin Krieg owned a dairy farm in St. Joe, Indiana, that was appraised
Question:
The Parol Evidence Rule. Carlin Krieg owned a dairy farm in St. Joe, Indiana, that was appraised at $154,000 in December 1997. In August 1999, Krieg told Donald Hieber that he intended to sell the farm for $106,000. Hieber offered to buy it. Krieg also told Hieber that he wanted to retain a “right of residency” for life in the farm. In October, Krieg and Hieber executed a “Purchase Agreement” that provided that Krieg
“shall transfer full and complete possession” of the farm “subject to [his] right of residency.” The agreement also contained an integration clause stating that “there are no conditions, representations, warranties, or agreements not stated in this instrument.” In November 2000, the house was burned in a fi re, rendering it unlivable. Hieber fi led an insurance claim for the damage and received the proceeds, but he did not fi x the house. Krieg fi led a suit in an Indiana state court against Hieber, alleging breach of contract. Is there any basis on which the court can consider evidence regarding the parties’ negotiations prior to their agreement for the sale of the farm? Explain. [Krieg v. Hieber, 802 N.E.2d 938 (Ind.App. 2004)]
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