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What is a "Merger Clause"?

A "merger clause" is an important provision added to a written business agreement. The purpose of a merger clause is to limit future litigation by preventing a party to a contract to excuse his or her default by claiming that he or she was misled prior to signing the contract. The merger clause basically states that the parties to the business agreement have "not" relied on any "oral statements" or representations and that any and all representations between the parties are contained, in writing, in the agreement.

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