Dallas Farm MacHinery Company v. Reaves

Writ of error was granted in this case on two of thirty points of error contained in petitioner’s application. The two points pose the question of whether parol evidence is admissible, in the face of a “merger” clause in a written contract, to establish that the contract was induced by fraud. We hold it is.

Petitioner, a partnership, as plaintiff, sought a recovery from respondent, as defendant, of the balance due on a written contract of purchase of an Oliver OC-3 crawler tractor and an Oliver-Ware 3W-I loader. By way of cross-action respondent sought a rescission of the contract and a…