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Question
The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.
FALSE
The parol evidence rule does not forbid parties from introducing proof of subsequent agreements. This is true even if the terms of the later agreement cancel, subtract from, or add to the obligations stated in the written contract.
Answer
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Related questions
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C. $20,000 fine and five years' imprisonment.
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Nast Corp. orally engaged Baker & Co., CPAs, to audit its financial statements. The management of Nast informed Baker that it suspected the accounts receivable were materially overstated. Although the financial statements audited by Baker did, in fact, include a materially overstated accounts receivable balance, Baker issued an unqualified opinion. Nast relied on the financial statements in deciding to obtain a loan from Century Bank to expand its operations. Nast has defaulted on the loan and has incurred a substantial loss. If Nast sues Baker for negligence in failing to discover the overstatement, Baker's best defense would be that:
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C. A securities broker who provides investment advice to retail investors.
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