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A buyer and seller signed a written agreement for the sale of a business. At signing, both orally agreed that the writing would become binding only if the buyer's bank approved financing by Friday. The bank rejected financing. The seller sues and argues that evidence of the oral financing condition is barred by the parol evidence rule.
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Evidence that the written agreement would become effective only if a stated condition occurred may be admissible to show a condition precedent to effectiveness. Evidence of fraud, mistake, or condition precedent is barred whenever the writing has a signature. Evidence of the oral condition is admissible only in sale-of-goods cases. Evidence of the oral condition is admissible only if the party offering it also proves part performance.

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