The Supreme Court of Appeal (SCA) in South Africa was recently tasked with considering the long established Parol Evidence Rule in the case of Mike Ness Agencies CC v Lourensford Fruit Company (Pty) Ltd. The parol evidence rule applies to all written contracts whether it was stated in the contract or not. The parol evidence rule has two components: the integration rule and the interpretation rule. ‘ First, the integration (or parol evidence) rule remains part of our law. Abstract. However, it is frequently ignored by practitioners and seldom enforced by trial courts. If the contract is not a meeting of the minds then the terms and conditions do not correctly reflect their intention. In the quotation, the appellant undertook to guarantee water within 70 metres of digging and that if no water was found at this depth, the appellant would drill from 70 to 100 metres, free of charge. If a document was intended to provide a complete jural act, extrinsic evidence may not contradict it, add to it or modify its meaning. On appeal to the High Court, however, the High Court found in favour of the respondent on the grounds that the appellant had not discharged the onus of proving it had provided sufficient water to comply with its contractual obligations. It is entered into with the intention of having some benefit. Contracts are agreements that set out each party’s rights and obligations. (0.047 seconds) Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. One can show that the contract was subject to a suspensive condition – that is to say that the contract would only be operational on the outcome of a certain future event; if the first agreement did not yield a favourable result to enforce the second contract then parties may adduce evidence to show that fact. The essence of the rule is that evidence (oral or written) of prior or contemporaneous agreements to add to or modify the terms of an unambiguous “integrated” written agreement is barred. KPMG, in the passage cited, explains that parol evidence is inadmissible to modify, vary or add to the written terms of the agreement, and that it is the role of the court, and not witnesses, to interpret a document. The SCA then stated that the considerable amount of evidence led by both sides, regarding their negotiations and what their intention was, had been inadmissible. The court will firstly utilise the rules of interpretation, including the common law principles regarding presumptions. Learn about our Pacific Alliance initiative. The respondent’s case centred on the fact that the appellant had requested a borehole with a yield of 10, 000 litres per hour and that, as the hole did not deliver such a yield, it was not obliged to pay. Although at first glance it appears as though this rule is trite,… This was then appealed to the SCA. Parol evidence rule: outside evidence only accepted when face value is confusing; Outside evidence can resolve ambiguity but not raise it ; A term cannot be implied because there are too many ways the parties may have chosen to resolve the issue; Frustration, however, can succeed. The court noted, with dissatisfaction, that often the Parol Evidence Rule tends to be ignored and seldom enforced by trial courts. Evidence (Law) - South Africa, Contracts - South Africa Date ... (SA) v Securefin Ltd case finally brought the law applicable to the parol evidence rule in the South African law of contract on par with its American and English counterparts. Note: Search is limited to the most recent 250 articles. (Law of Contract)The parol evidence rule encompasses those rules that regulate the admissibility of extrinsic evidence. African Customary Law, Customs, and Women's Rights - Muna Ndulo; A GUIDE TO ADMINISTRATIVE AND LOCAL GOVERNMENT LAW IN ZIMBABWE; A Guide To The Zimbabwean Law Of Delict ; Commentary on the Criminal Law (Codification and Reform) Act [Chapter 9:23] Criminal Procedure in Zimbabwe; Final Papers of the 2016 National Symposium on the Promise of the Declaration of Rights under the … 1940, s. 2400, where the learned author opined that the rule is in no sense a rule of evidence but a rule of substantive law. Signed: _____ Gert van Tonder . Parol evidence is evidence pertaining to the agreement that isn't included in a written contract. In terms of the integration rule, the written agreement is the “exclusive memorial” of the agreement between the parties.1 The written agreement contains all the express terms of the contract and as such “the contents of the document [may not be] contradicted, altered, added to or varied by parol evidence”.2 It was recently held in the Supreme Court of Appeal (SCA) that “a court may not admit evidence as to what the parties intended it to mean if that has the effect of changing the terms of which they clearly agreed [in writing]”.3. Subscriptions are available via the Creamer Media Store. 3 ABSA Technology v Michael’s Bid a House (212/2012) [2013] ZASCA 10 (26 February 2013) at para 20. The Supreme Court of Appeal (SCA) in South Africa was recently tasked with considering the long established Parol Evidence Rule in the case of Mike Ness Agencies CC v Lourensford Fruit Company (Pty) Ltd. Abstract. The parol evidence rule was received into South African law through English law. 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