Question

A contract is made between two parties. The terms of the contract are complete and unambiguous. A dispute arises between the Parties. Party A wants to pull out of the contract without penalty. Party B argues that Party A’s proposed action is prohibited by the express terms of the contract. Party A argues that the Parties verbally agreed to ignore that provision of the contract that would impose a penalty on Party A. Which Party will prevail and why?

Answer 1

Answer: Party B

Explanation:

Even though verbal agreements are enforceable by law, written agreements take precedent because they are more explicit than verbal agreements.

The written agreement will therefore be followed in this case and according to this agreement, A will be punished for the proposed action.

If A had tangible proof that a subsequent agreement was reached that would void them of said punishment, they should present it. If they do not, B would prevail.