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Boud v. SDNCO, Inc., 54 P.3d 1131 (2002)

Generally, the parol evidence rule prevents parties to a written contract from proving the existence of additional agreements that contradict the written contract’s terms. In Boud versus SDNCO, the parol evidence rule sank a plaintiff’s hopes of returning his faulty yacht.

SDNCO operated Wasatch Marine, which sold yachts manufactured by Cruisers Yachts. Joseph Boud visited Wasatch, where he reviewed a Cruisers sales brochure. In the brochure, Boud saw a photograph of a particular model of yacht speeding through the water. The photograph’s caption praised the yacht as offering the best performance in its class and superb handling. Influenced by the brochure, Boud bought the yacht.

Boud signed a sales contract containing a limited warranty. The contract also contained an integration clause stating that the written sales contract included all the terms of the parties’ agreement and superseded any prior agreements. Further, the contract stated that the seller and manufacturer made no warranties except for the limited warranty printed in the sales contract.

The yacht experienced multiple electrical and mechanical problems. After Wasatch serviced the yacht but couldn’t fix it, Boud tried to rescind the sales contract. Instead, Cruisers offered to repair or replace any defective parts pursuant to the limited warranty.

Boud then sued Cruisers and Wasatch for rescission. Boud argued that the brochure’s photograph and caption constituted an express warranty that the yacht failed to satisfy. The trial court granted Cruisers’ motion for summary judgment, concluding that the brochure was mere puffery that didn’t create any warranties. Boud appealed to the Utah Supreme Court.

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