Opinion ID: 1347838
Heading Depth: 1
Heading Rank: 2

Heading: The Doctrine of Incorporation by Reference.

Text: We have not specifically addressed what is required for a contract to incorporate an extrinsic document by reference or how the incorporating contract should be interpreted. The Iowa cases that mention the doctrine of incorporation by reference in the context of general contract law do so without comment. See, e.g., Porter v. Iowa Power & Light Co., 217 N.W.2d 221, 228 (Iowa 1974) (court agreed trial court properly considered portions of contract incorporated by reference); Jefferson County v. Barton-Douglas Contractors, 282 N.W.2d 155, 157 (Iowa 1979) (court discussed construction contract incorporating by reference industry arbitration rules). We have discussed this doctrine, however, in the context of testamentary dispositions. See In re Estate of Safley, 193 N.W.2d 118, 120 (Iowa 1971). Other jurisdictions have considered the doctrine of incorporation by reference outside of the testamentary context. See International Graphics, Inc. v. Bryant, 252 Ark. 1297, 482 S.W.2d 820, 821 (1972) (Where a written contract refers to another instrument and makes the terms and conditions of such instrument a part of it, the two will be construed together as the agreement of the parties.); Batter Bldg. Materials Co. v. Kirschner, 142 Conn. 1, 110 A.2d 464, 468 (1954) (Where ... the signatories execute a contract which refers to another instrument in such a manner as to establish that they intended to make the terms and conditions of that other instrument a part of their understanding, the two may be interpreted together as the agreement of the parties.); OBS Co. v. Pace Constr. Corp., 558 So.2d 404, 406 (Fla.1990) (It is a generally accepted rule of contract law that, where a writing expressly refers to and sufficiently describes another document, that other document, or so much of it as is referred to, is to be interpreted as part of the writing.); Wilson v. Wilson, 217 Ill.App.3d 844, 160 Ill.Dec. 752, 577 N.E.2d 1323, 1329 (1991) (For a contract to incorporate all or part of another document by reference, the reference must show an intention to incorporate the document and make it part of the contract.); Garrett v. State Farm Mut. Ins. Co., 112 Or.App. 539, 829 P.2d 713, 716 (1992) (When a written contract refers in specific terms to another writing, the other writing is part of the contract.). The common thread throughout these cases is a requirement that the reference be clear and specific. We now adopt such a requirement. We believe the signature card's reference to the open account agreement in this case is sufficiently clear and specific to allow incorporation of the latter agreement into the depositor's agreement of Paul and Bernice on July 29, 1969. In reaching this conclusion, we find from the evidence that the open account agreement that contains the language establishing the joint tenancy was delivered to the depositors contemporaneously with the signing of the signature cards. We have recognized that, when a deposit is evidenced by a bank book, delivery of the book to either depositor is sufficient to finalize the agreement. In re Estate of Martin, 261 Iowa 630, 155 N.W.2d 401, 405 (1968). Our inquiry does not end at this point. The question before us concerns the nature of the depositor's agreement with Marguerite when her name was added to the signature card in November 1977. At this time, Paul was sole owner of the account as surviving joint tenant under the agreement with Bernice. Paul did not execute a new depositor's agreement when Marguerite's name was added to the signature card. It is clear from the evidence, however, that he initiated and gave consent to Marguerite acquiring signature card status, whatever that status was intended to be. The situation presented is thus similar to that before us in Martin. In that case, we held that the oral direction to a bank by the sole owner of a certificate of deposit to reissue the certificate in the name of W.F. Martin (the owner) or Isal Barber (the owner's sister) created a joint tenancy interest in the owner's sister.