A buyer and seller in Brookline, Massachusetts sign a Purchase and Sale Agreement. The agreement contains no explicit merger clause. At closing, the seller delivers a deed that includes a warranty covenant. After closing, the buyer discovers the seller had misrepresented the square footage of the property in the P&S. The seller claims the P&S merged into the deed at closing and cannot be used as the basis for a claim. Under Massachusetts law, which statement BEST describes the doctrine of merger as applied to this situation?
Correct Answer
B) The merger doctrine does not apply to collateral promises or representations in the P&S that are independent of the deed's conveyance of title
Under Massachusetts law, the merger doctrine provides that contractual provisions in a Purchase and Sale Agreement generally merge into the deed upon closing. However, Massachusetts courts recognize an important exception: collateral promises or representations in the P&S that are independent of the conveyance of title — such as representations about square footage, condition, or other matters not addressed by the deed — do not merge into the deed and may still be enforced after closing. The buyer's claim based on misrepresentation of square footage would likely survive the merger doctrine as a collateral matter.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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