A merger clause, also known as an integration clause or an entire agreement clause, is a provision typically found in contracts that aims to prevent any prior oral or written agreements, understandings, or negotiations from affecting the terms of the contract.
In essence, a merger clause serves as a statement that the written contract represents the entire agreement between the parties and that any previous agreements or negotiations are no longer binding. This clause is intended to prevent misunderstandings or disputes that may arise from oral or written agreements that are not reflected in the final written contract.
By including a merger clause in a contract, the parties can rely solely on the terms and conditions set forth in the written contract without the fear of any contradictory claims or assertions that may have been made prior to the contract’s execution.
