Contracts & ExecutionQuestion 842 of 1605
A written contract contains a clause stating, 'This document is the entire and final agreement of the parties, and no other promises apply.' This is known as:
a.An arbitration clause
b.A force majeure clause
c.An integration (merger) clause
d.A liquidated damages clause
Explanation
A clause declaring that the written document is the complete and final agreement is an integration or merger clause. It signals the parties intended the writing to be fully integrated, strengthening application of the parol evidence rule to exclude prior or contemporaneous outside promises. It is not a force majeure clause (uncontrollable events), a liquidated damages clause (pre-set damages), or an arbitration clause (dispute forum); its function is to establish finality of the writing.
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