What is the test for establishing a collateral agreement where the collateral agreement is inconsistent with or contradicts the written agreement?

British Columbia, Canada

The following excerpt is from Nili Holdings Ltd. v. Rose, 1981 CanLII 274 (BC SC):

See also the case of Hawrish v. Bank of Montreal (1969), 1969 CanLII 2 (SCC), 2 D.L.R. (3d) 600 at p. 605, [1969] S.C.R. 515 at p. 520: My opinion is that the appellant’s argument fails on the ground that the collateral agreement allowing for the discharge of the appellant cannot stand as it clearly contradicts the terms of the guarantee bond which state that it is a continuing guarantee. … a collateral agreement cannot be established where it is inconsistent with or contradicts the written agreement.

Other Questions

Can an oral agreement or representation be used to establish a collateral agreement? (British Columbia, Canada)
Is a binding oral agreement to vary the written agreement regarding child support enforceable? (British Columbia, Canada)
Can a lawyer who entered into a fixed fee agreement with a client without the client signing a written agreement with respect to the amount of money that was deposited into his general account? (British Columbia, Canada)
Is parol evidence admissible to establish that an oral agreement does not conflict with the written contract? (British Columbia, Canada)
Can an unwritten collateral contract that goes to the root of the reason for one party entering into the subsequent written agreement be enforced? (British Columbia, Canada)
Does the entire agreement clause in the Lease precludes any cause of action based on a collateral promise or agreement? (British Columbia, Canada)
If there is a contradiction between two statements made by the same witness at different times, can that contradiction affect the credibility of the witness? (British Columbia, Canada)
Can a secured party to a general security agreement require them to pay legal fees to preserve collateral? (British Columbia, Canada)
Can an arbitrator deal with a collective agreement that expressly or inferentially arises out of the collective agreement? (British Columbia, Canada)
What is the test for establishing that an agreement is not a conspiracy? (British Columbia, Canada)

Whitelogo nobg 300dpi sm

"The most advanced legal research software ever built."

Trusted by top litigators from across North America.