Dallas Farm MacHinery Company v. Ben Reaves

Summary

The Texas Supreme Court held that parol evidence is admissible to prove fraud in the inducement of a contract even when the contract contains a merger clause, thereby allowing rescission of the contract. The Court affirmed the Court of Civil Appeals' judgment in favor of the respondent. A concurring justice agreed with the result, emphasizing the continuing fraud in the transaction. The decision aligns Texas law with the Massachusetts approach and the Restatement of Contracts.