Opinion ID: 600386
Heading Depth: 3
Heading Rank: 1

Heading: Lippert Individually and Intercat

Text: 14 If the oral agreement is between Velten on one hand and on the other hand Lippert and Intercat jointly, Velten contends that evidence of its existence is not barred by the written consulting agreement between him and Intercat because it would be a collateral oral agreement to the written consulting contract with Intercat. The district court examined this possibility and concluded that the alleged oral agreement was not collateral to the written consulting contract because both agreements concerned Velten's compensation for leaving his old job and joining Lippert's efforts to create and sustain a new company. 15 If Intercat is a party to the oral agreement, the parties to both the oral agreement and the written consulting contract include Velten and Intercat and the parol evidence rule then is applicable. Velten contends that the district court incorrectly concluded that evidence of an oral agreement about the ownership of Intercat would vary the terms of the written agreement concerning his compensation as a consultant. Under his theory ownership is a subject distinct from compensation, and a contract addressing compensation should not be expected to include an agreement concerning ownership. 16 New Jersey permits the introduction of parol evidence of a collateral oral agreement on a subject distinct from that of the written contract. Shinn v. Black, 117 A. 142, 142 (N.J.1922). This means that the subject matter of the two agreements must be different. Loxley v. Studebaker, 75 N.J.L. 599, 68 A. 98, 101 (N.J.1907). For example, if two parties have a written contract for the sale of property, an oral warranty as to the quality of the property would not relate to a subject matter distinct from the written contract. Id. (citing Naumberg v. Young, 44 N.J.L. 331 (N.J.1882)). Although Velten is correct that the alleged oral ownership agreement might be a different type of agreement than the written contract paying him a daily rate as a consultant, the subject matter of both agreements is the same: Velten's compensation for providing his services to Intercat. Accordingly, the district court correctly concluded that Velten may not introduce evidence of the alleged oral agreement if it was between him on the one hand and Lippert and Intercat on the other.