What is the enforceability of oral statements in equipment finance contracts under the statute of frauds?

• A. Oral statements can modify or contradict written contracts.
• B. Oral statements cannot modify or contradict written contracts.
• C. Oral statements are always binding.
• D. Oral statements can modify but not contradict.

Answer: (B)

The key idea is that written contracts govern and oral statements can’t override or change them. When a financing agreement for equipment is in writing and falls under the statute of frauds, any modifications or terms introduced orally generally cannot alter the written deal or contradict its terms. This protection comes from the parol evidence rule, which keeps the written agreement as the final expression of the parties’ deal. If the parties want to change the terms, the modification typically must be in writing and signed to be enforceable. Notes or promises made orally may be helpful for context or interpretation, but they don’t bind the contract if they conflict with the written terms. In practice, a fully integrated written contract stands, and only a written amendment can modify or add to it.