New York Law (NYLE) Practice Exam

In a breach of contract case, when is extrinsic evidence admissible?

1. Whenever either party requests it

2. Only if the contract is written

3. Only if the agreement is ambiguous on its face

4. Whenever it helps clarify the parties' intentions

The correct answer is: Only if the agreement is ambiguous on its face

Extrinsic evidence is admissible in a breach of contract case primarily when the agreement is ambiguous on its face. This principle is rooted in the interpretation of contracts, where courts aim to understand the true intentions of the parties involved. If the contract language is unclear or can be reasonably interpreted in more than one way, extrinsic evidence—such as prior negotiations, correspondence, industry practices, or other relevant materials—can be introduced to shed light on the parties' intent. This admissibility hinges on the understanding that courts need to resolve ambiguities to provide a fair judgment and uphold the spirit of the contract agreement. If a contract is clear and unambiguous, extrinsic evidence would typically be excluded, as the contract's language alone should govern the parties' obligations and rights. The other options do not accurately reflect the circumstances under which extrinsic evidence would be admitted. For instance, merely requesting evidence or the contract being written does not suffice for its admissibility; the critical factor remains the existence of ambiguity in the contract's terms. Additionally, while extrinsic evidence can clarify intentions, it is not universally admissible whenever it aids clarity; it must first meet the threshold of addressing ambiguity in the contract.