The dangers of poorly drafted contracts are well known.
Nonetheless, disputes continue to make their way to the courts.
Faced with limited resources and real time constraints, councils
often enter into contracts that have been used previously,
containing schedules and annexures to determine scope that do not
apply to the current project.
Likewise, insufficient thought may be given to what certain
words or terms mean, and the operation of the contract's
terms.
That said, there are ways to avoid disputes.
The overarching rule
As a general rule parties are bound by the words within the four
corners of a written contract, a principle known as the parol
evidence rule. Said another way, extrinsic evidence – such as
oral discussions held before the contract was signed – is
inadmissible in court should a contract dispute arise, unless an
exception applies.
