Texas Supreme Court

F. A. Hubacek v. Ennis State Bank

October 8, 1958159 Tex. 166

Summary

The Texas Supreme Court reversed the Court of Civil Appeals and remanded for further consideration, holding that the oral collateral agreement between Hubacek and the bank was not inconsistent with the written notes and therefore not barred by the parol evidence rule. The Court emphasized that the rule is substantive law and does not preclude enforcement of collateral agreements that do not vary the written contract. Justice Norvell dissented, arguing that the oral agreement contradicted the written endorsement obligations.