In re West Michigan Distributing Co.

FOX, District Judge.

This matter involves a petition for review of a bankruptcy order denying the Trustee’s claim that a lease agreement between the bankrupt and Monical Leasing Company was in reality a conditional sales contract.

The principal issue for our consideration is whether parol evidence is admissible to vary the terms of the lease agreement. The Referee held that such evidence was not admissible.

The Trustee contends that the parol evidence rule is binding only on the parties to a writing and that a stranger to a writing may introduce parol evidence to vary its terms.

Although there…