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 despite a merger clause, allowing rescission of the contract. The Court adopted the rule articulated in Edward Thompson Co. v. Sawyers and rejected the contrary line of authority in Avery Co. and Patton. The judgment of the Court of Civil Appeals was affirmed. Justice Smith, in a concurring opinion, agreed with the result but criticized the majority's extensive case analysis.