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MERGER CLAUSES

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UNIDROIT PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS  FORMATION

ARTICLE 2.1.17

(Merger clauses)

A contract in writing which contains a clause indicating that the writing completely embodies the terms on which the parties have agreed cannot be contradicted or supplemented by evidence of prior statements or agreements.

However, such statements or agreements may be used to interpret the writing.

 

 

COMMENT

If the conclusion of a contract is preceded by more or less extended

negotiations, the parties may wish to put their agreement in writing

and declare that document to constitute their final agreement. This can

be achieved by an appropriately drafted “merger” or “integration”

clause (e.g. “This contract contains the entire agreement between the

parties”). However, the effect of such a clause is not to deprive prior

statements or agreements of any relevance: they may still be used as a

means of interpreting the written document. See also Art. 4.3(a).

A merger clause of course covers only prior statements or

agreements between the parties and does not preclude subsequent

informal agreements between them. The parties are, however, free to

extend an agreed form even to future amendments. See Art. 2.1.18.

This article indirectly confirms the principle set out in Art. 1.2 in

the sense that, in the absence of a merger clause, extrinsic evidence

supplementing or contradicting a written contract is admissible.