Opinion ID: 991290
Heading Depth: 4
Heading Rank: 2

Heading: by evidence of consistent additional terms

Text: unless the court finds the writing to have been intended also as a complete and exclusive state- ment of the terms of the agreement. Ga. Code Ann. § 11-2-202. Strongly contending that the contract did not become effective until August 27 when Flowers Ginning paid the earnest money, ARMA contends that the evidence supporting Flowers Ginning's contention that the parties orally modified the contract on August 26 to provide for an October 1 installation and operational deadline, rather than November 19, should have been excluded under the GCC parol evidence rule as evidence of a prior agreement that contradicted an express term of the written contract. We disagree. Initially, we note that, notwithstanding ARMA's argument to the contrary, the magistrate judge properly determined that August 21 constituted the effective date of the contract. The contract provided that it be exercised not before the expiration of 10 days nor after the expiration of 90 days from the date hereof. (J.A. 1275). Because the contract was signed by ARMA's president on August 21, 1991, that date constituted the date hereof. Id. August 21 constituted the effective date of the contract despite subsequent language in the contract 10 that suggested the contract would not become effective until Flowers Ginning paid ARMA the earnest money. Specifically, the contract provided that [t]he buyer shall consummate the purchase during said period by tendering the purchase price in the manner described above. (J.A. 1275). The contract called for $263,130 to be paid in earnest money that would be credited against the purchase price when [the contract] is consummated. (J.A. 1274). At best then, the contract is ambiguous with respect to its effective date. Because ARMA prepared the contract, any ambiguity in its terms must be construed against it. See Considine Co. of Ga., Inc. v. Turner Communications Corp., 273 S.E.2d 652 (Ga. Ct. App. 1977). Thus, we cannot say that the magistrate judge erred by concluding that the contract became effective on August 21, the date ARMA's president signed the contract.7 Having concluded that the magistrate judge correctly determined that August 21 constituted the effective date of the contract, the GCC parol evidence rule loses all applicability to the evidence which ARMA argues was erroneously admitted. The GCC parol evidence rule bars admission of evidence of any prior agreement[s] or any contemporaneous oral agreement[s] which contradict the terms of the parties' final written agreement. Ga. Code Ann.§ 11-2-202. [T]he parol evidence rule simply does not apply to evidence of subsequent agreements or modifications. Wright & Summers, supra at 98; see also Wayman v. Amoco Oil Co., 923 F. Supp. 1322, 1340 (D. Kan. 1996) (The parol evidence rule (UCC§ 2-202) does not apply to evidence of subsequent agreements or modifications . . . .); Muther-Ballenger v. Griffin Elec. Consul., 397 S.E.2d 247, 250 (N.C. Ct. App. 1990) (rejecting argument that the parol evidence rule under the North Carolina Commercial Code would bar plaintiff's evidence of oral modifications made subsequent to the written contract). Here, the oral modification occurred on August 26, a date subsequent to _________________________________________________________________ 7 ARMA also argues that, during his cross examination, Charlie Warren admitted that there was no contract between Flowers Ginning and ARMA until Flowers Ginning paid the earnest money. ARMA's argument is without merit. Our review of the record reveals that such an admission by Charlie Warren is far from clear, and cannot form a basis for concluding that the magistrate judge erred by determining that the contract became effective on August 21. 11 August 21, the effective date of the contract. Accordingly, the GCC parol evidence rule did not apply to bar Flowers Ginning's evidence that the parties agreed to orally modify the delivery and installation date from November 19, 1991 to October 1, 1991.